How does the elasticity of demand affect the shape of the demand curve for Bitcoin?

1 answers

• Sandeep ChakarbortyNov 28, 2020 · 5 years ago
  The elasticity of demand has a direct impact on the shape of the demand curve for Bitcoin. When the demand for Bitcoin is elastic, the demand curve will be flatter. This means that buyers are highly responsive to price changes, and even a small change in price will result in a significant change in quantity demanded. Conversely, when the demand for Bitcoin is inelastic, the demand curve becomes steeper. In this case, buyers are less sensitive to price changes, and price fluctuations will have a relatively smaller impact on the quantity demanded. Hence, the elasticity of demand determines the slope and position of the demand curve for Bitcoin.
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