Steep Demand    Suppose we consider an increase in price from 4 to 8, and a drop in quantity demanded from 3 to 2. Taking the first number as the base in each case we have a 100% increase (+) in price (price rises by 4 which is 100% of 4) and a 33% drop (-) in quantity (fall of quantity by 1 which is 1/3 of 3). The percent change in quantity 33%, is divided by the percent change in price of 100%, and multiplied by - 1, resulting in = .33, an inelastic demand. Let's try another change...

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