Question

how helpful the knowledge elasticty of demand in supply of a product is to understand equilibrium point. your should be form real life​

Answer 1

Answer:

Explanation:

Price elasticity of demand (PED) shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded.

calculate the effect of price changes on quantity demanded, and on the revenue received by firms before and after any price change.

For example, if the price of a milk increases from Rs.40.00 to Rs. 45.00, and the daily sales falls from 100,000 to 50,000, the PED will be:

= % change in quantity demanded/ %change in price