price elasticity of demand .
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Please explain the concept of " price elasticity of demand " ?
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This solution discusses the concept of price elasticity of demand (PED).
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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 ...
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