What is price elasticity of demand?
1 Answer
Oct 31, 2015
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.
