In our table, goods and services with a relatively elastic demand are things such as private education, motor vehicles, restaurant meals and fresh tomatoes. They all have an elasticity coefficient of more than 1. What this means is that the quantity demanded is extremely sensitive to a change in the price. On the basis of this, we can argue that people are relatively responsive or sensitive to adjusting their quantity demanded if the price changes. In the case of private education, which has a price elasticity of 1,1, this implies that a 10% rise in the price of private education will decrease the quantity demanded by 11% – the percentage change in price is less than the percentage change in quantity demanded. This is then referred to as a relatively elastic demand.
Graphically, a relative elastic demand can be represented as follows:
