what is the price elasticity of demand ? Can you explain it in your own words ?
Answers
Answer:
Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price.
According to basic economic theory, the supply of a good will increase when its price rises.
Conversely, the supply of a good will decrease when its price decreases.
A good's price elasticity of demand is a measure of how sensitive the quantity demanded of it is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others.Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.