Define price elasticity of demand. A consumer buys 40 units of a good at a price of rs3 per unit.
When price rises to rs4 per units? Calculate price elasticity of demand.
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The price elasticity of demand is an economic indicator of the increase in the quantity of commodity demands or consumes in relation to its change in price. Economists use price elasticity to explain how supply or demand changes and understand the workings of the real economy, despite price changes
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