PRICE
ELASTICITY OF DEMAND
Elasticity, of the quantity demanded of a good or service
to a change in its price when nothing but the price changes.
...
let us look at an example from my life which relates to
when the price of petrol went up by 50%, my petrol usage also
got reduced
this is related to price elasticity of demand.
Thus, we can say that every percentage change in petrol price
will impact the quantity purchased will be decreased.
Usually price elasticity in this kind of cases it will be
negative, it even follows the law of demand, the increase in price by one unit
will affect the decrease in quantity demand.
Rise In price by 50% in petrol decreased the usage of petrol,
the quantity demand decreased.
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