#### Question

What is meant by price elasticity of demand?

#### Solution

Price elasticity of demand:

Price elasticity of demand measures the responsiveness of quantity demanded any good due to one percent change in the price of that good. Percentage method to calculate the price elasticity of demand for a good is as follows: e_{p} = Percentage change in the demand for the good/Percentage change in the price of the good

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What is Meant by Price Elasticity of Demand? Concept: Elasticity of Demand and Elasticity of Supply.

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