How would you explain the concept of "price elasticity" to a co-worker?
Price elasticity of demand is a measure of the percentage change in the quantity of a good demanded divided by the percentage change in its price. (thetimes100, 2009)
We can show this in a simple formula:
Price elasticity demand = percentage change in quantity demanded divided by percentage change in the price of the goods
Hence PEoD = (% Change in Quantity Demanded)/ (% Change in Price)
Hence we must ...
Response discusses the concept of 'price elasticity' to a co-worker