Price Elasticity of Demand

Price Elasticity of Demand:

price elasticity of demand is the situation when the demand change due to change in the price. if price increase demand decreases while decrease in price increase the demand, price elasticity of demand means percentage change in the demand of the commodity due to change in its price .in other words , responsiveness of demand to change in price is called price elasticity of demand.

Formula of price elasticity of demand:

Price elasticity of demand: %change in quantity demand/ %change in price.

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