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    Please explain the concept of " price elasticity of demand " ?

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    The Price Elasticity of Demand (PED) also known as price elasticity, measures the rate of response of quantity demanded due to a price change. This means that PED is used to see how sensitive the demand for a good is relative to a price change.

    The higher the PED (PED > 1) indicates that consumers are more sensitive to price changes. This means that a high PED suggests that when the price of a ...

    Solution Summary

    This solution discusses the concept of price elasticity of demand (PED).