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    Purpose of Price Elasticity

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    Can you explain the point of price elasticity?

    © BrainMass Inc. brainmass.com May 20, 2020, 10:29 pm ad1c9bdddf

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    The point of price elasticity is to allow economists to determine how a change in price affects customer demand. This is performed by a mathematical calculation, and the answer to the calculation tells us how the price change has specifically affected demand. I can't copy the equation into this box, but you can see it here: ...

    Solution Summary

    This solution explains the point of price elasticity. A detailed explanation is provided.