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    price elasticity of demand

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    How would you explain the concept of "price elasticity of demand"?

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    How would you explain the concept of "price elasticity of demand"?

    The price elasticity of demand measures how responsive is the quantity demanded of a good to variations in the price of that good. The price elasticity of demand shows the sensitivity of the quantity demanded to a change in the price of the good.
    The price elasticity of demand = (% Change in Quantity Demanded)/ (% Change in Price).
    Actually the concept of price elasticity of demand measures the sensitivity of the demand for a good to price change. The higher the ...

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