If demand is inelastic, is the demand curve flat or steep?

Question

anonymous · Answer

Flat - but this shouldn't be posted in the Maths area.

anonymous · Answer

ah okay thank you! yeah i haven't been able to add subjects for a few weeks :/

jim_thompson5910 · Answer

|dw:1415074384479:dw|

jim_thompson5910 · Answer

let's say we have a relatively flat demand curve
|dw:1415074410423:dw|

jim_thompson5910 · Answer

and let's say the price is currently at P1 which means the quantity demanded is Q1

|dw:1415074444378:dw|

jim_thompson5910 · Answer

now bump the price up a little bit, to P2

|dw:1415074504093:dw|

the quantity demanded drops a lot to get to Q2. This relatively flat demand curve is very elastic. A small change in price causes a huge change in quantity demanded.

jim_thompson5910 · Answer

I recommend comparing this relatively flat demand curve with something very steep, like this maybe

|dw:1415074655023:dw|

and see if that is more elastic or more inelastic

anonymous · Answer

ahh okay i see :) so it's more elastic in that case?

jim_thompson5910 · Answer

which graph?

anonymous · Answer

that last one?

jim_thompson5910 · Answer

why elastic?

anonymous · Answer

i thought because there's more change? or is it the opposite?

jim_thompson5910 · Answer

consider this graph
|dw:1415075450649:dw|

jim_thompson5910 · Answer

what happens when you increase the price by a little bit?

anonymous · Answer

the quantity demanded decreases?

jim_thompson5910 · Answer

by a little? or a lot?

anonymous · Answer

by a lot?

jim_thompson5910 · Answer

yes

jim_thompson5910 · Answer

so is this elastic or inelastic?

anonymous · Answer

inelastic?

jim_thompson5910 · Answer

why?

anonymous · Answer

because of there is more change than in price?

jim_thompson5910 · Answer

what does it mean if demand is inelastic

anonymous · Answer

that's when consumers are insensitive to a change in price, so the percentage change in quantity demanded is less than the percentage change in price?

jim_thompson5910 · Answer

so let's say the price increases by 10%

what is a possible change in demand if demand is inelastic?

anonymous · Answer

demand decreases? @jim_thompson5910 :)

jim_thompson5910 · Answer

by how much

anonymous · Answer

by a lot? or is there a specific number?

jim_thompson5910 · Answer

well remember this demand is inelastic, so it has to be less than some number

anonymous · Answer

so less than 10%?

jim_thompson5910 · Answer

yes

jim_thompson5910 · Answer

some change in price leads to a smaller change in demand

jim_thompson5910 · Answer

will this curve be steep or flat?

anonymous · Answer

this curve will be steep right?

jim_thompson5910 · Answer

yes, inelastic curves are steep