Question #67727

Briefly explain price elasticity of demand and how it is measured

Expert's answer

Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. The formula for calculating price elasticity of demand is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

Reference:

http://www.investopedia.com/terms/p/priceelasticity.asp#ixzz4fAKnMjsE

Reference:

http://www.investopedia.com/terms/p/priceelasticity.asp#ixzz4fAKnMjsE

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