Answer to Question #67727 in Microeconomics for Sammi

Question

Briefly explain price elasticity of demand and how it is measured

Answer 1

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