Define price Elasticity of demand. Explain its various degrees. Use diagram
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Define price Elasticity of demand. Explain its various degrees. Use diagram
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Explanation:
In simple words, price elasticity of demand is the ratio of percentage change in quantity demanded to the percentage change in price. In other words, price elasticity of demand is a measure of the relative change in quantity purchased of a good in response to a relative change in its price.
Answer:
In simple words, price elasticity of demand is the ratio of percentage change in quantity demanded to the percentage change in price. In other words, price elasticity of demand is a measure of the relative change in quantity purchased of a good in response to a relative change in its price.
Degrees of Elasticity of Demand - Perfectly Elastic Demand - Perfectly Inelastic Demand - Unitary Elasticity of Demand - Elastic Demand - Inelastic Demand - Definition - Diagram - Formula