Explaining Price Elasticity of Demand
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How would you explain the concept of 'price elasticity of demand'?
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Solution Summary
The solution discusses the price elasticity of demand, including the equation for it and links for further readings. 259 words.
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As per thetimes100, "When you raise the price of most items, people will buy less of them. For example, when one airline raises its price, air passengers may switch to a rival airline.
When you reduce the price of most items, people will buy more of them. For example, when supermarkets make special offers with reduced prices, they expect a sharp increase in corresponding sales.
Common sense tells us that when prices change, so too will the quantities ...
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