Question
Explain price elasticity of demand.
✓
Answer
Price elasticity of demand is a measure showing percentage change in quantity demanded with respect to some percentage change in own price of the commodity.
Price elasticity of demand $\left(E_d\right)=(-) \frac{P}{Q} \times \frac{\Delta Q}{\Delta P}$
Here, △Q = Change in quantity demanded; △P Change in price; Q = Initial quantity; P = Initial price.
Price elasticity of demand $\left(E_d\right)=(-) \frac{P}{Q} \times \frac{\Delta Q}{\Delta P}$
Here, △Q = Change in quantity demanded; △P Change in price; Q = Initial quantity; P = Initial price.
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