Price Elasticity Of Demand

Price elasticity of demand (PED) defines that the measure of demand after any changes in the price of product.

Price elasticity of demand
            = % Change in Quantity Demanded /
                % Change in Price

Price elasticity of demand is greater than 1 when percentage change in quantity is greater than percentage change in price, therefore demand is elastic.

Features of elastic of goods :-

1.  Goods are luxury.
2.  Goods are expensive.
3.  Goods with many substitutes and             competitive market.
4.  Goods brought frequently.