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    Define the elasticity of demand.

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    Define the elasticity of demand. What has happened to the demand elasticity for most firms during the last 10-15 years? Explain.

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    Hi there,

    In economics, the price elasticity of demand (PED) is an elasticity that measures the responsiveness of the quantity demanded of a good to its price. The formula used to calculate the coefficient of price elasticity of demand is:
    E = % change in quantity demanded of product X / % change in price of product X

    Price elasticity of demand is measured as the percentage change in quantity demanded that ...

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    The expert defines the elasticity of demand.