Question

what is price elasticity of demand???​

Answer 1

Price elasticity of demand is the responsiveness of the quantity demanded to a change in price.

1. Price elasticity of demand = percentage change in the quantity demanded/percentage change in price
2. = (change in quantity demanded/quantity demanded)/(change in price/price)
3. It is always negative (mathematically) because there is inverse relationship between price and quantity but for convenience we  ignore the sign.
4. It can be greater that 1(elastic demand), equal to 1(unitary demand) or less than 1(inelastic demand).