Question

Define price elasticity of Demand and give the formula to measure Price

Elasticity of Demand.​

Answer 1

The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price. Therefore, the elasticity of demand between these two points is 6.9%−15.4% which is 0.45, an amount smaller than one, showing that the demand is inelastic in this interval.

Answer 2

Answer:

ANSWER :-

Elasticity of Demand : Elasticity of demand refers to the degree of responsiveness of quantity demanded of a commodity to change in any of its determinants, namely price of the commodity, price of other commodities and income of the consumers. It is a measure of how sensitive the quantity demanded of a commodity is to a change in any of the factors influencing demand.

There are 3 types of elasticity of demand :

1. Price elasticity of demand
2. Cross elasticity of demand
3. Income elasticity of demand