Explain what is meant by ‘price elasticity of demand’

'Price Elasticity of Demand' essentially refers to the responsiveness of Demand with respect to price. It can be understood as the proportional change in demand after a change in price. To calculate the Price Elasticity of Demand find the percentage change in quantity demanded and divide by the percentage change in price. This will produce the price elasticity of demand figure.

Answered by Zyad A. Economics tutor

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