Price elasticity is defined as the measure of change in the quantity demanded of particular item or goods and the change of its price
Price elasticity of demand is a term commonly used in economics in context to price sensitivity
It is formulated as the ratio percentage change in quantity demanded to percentage change in price
For example- if there is a small change in price and a large change in quantity demanded it is called elastic and if there is a large change in price and a small change in quantity demanded it is called inelastic
Thursday, August 23, 2018
Price elasticity
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