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The numerical value of elasticity of demand can assume any value between zero and infinity.
- Elasticity is zero, if there is no change at all in quantity demanded when price changes i.e. when quantity demanded does not respond to a price change.
- Elasticity is one, or unitary, if the percentage change in quantity demanded is equal to the percentage change in price.
- Elasticity is infinite, when some ‘small price reduction raises the demand from zero to infinity. Under such a case consumers will buy all that they can obtain of the commodity at some price. If there is a slight increase in price, they would not buy anything from the particular seller.
- Elasticity is greater than one when the percentage change in quantity demanded is greater than the percentage change in price. In such a case, demand is said to be elastic.
- Elasticity is less than one when the percentage change in quantity demanded is less than the percentage change in price. In such a case demand is said to be inelastic.
