What is price elasticity of demand?

1 Answer
Oct 31, 2015

Answer:

Price elasticity of demand tries to assign a numerical value to the proportionate change in quantity to a given proportionate change in price.

Explanation:

Whenever price changes, quantity demanded also changes. This responsiveness differ from good to good.

The concept, Elasticity of demand offers a technique by which we can assess the responsiveness of quantity demanded of a good to a given change in its price.

Elasticity of Demand