Price elasticity of demand

The price elasticity of demand is defined as the degree of sensitiveness or responsiveness of demand for a commodity to the changes in its price. More precisely, elasticity of demand is the percentage change in the quantity demanded of a commodity as a result of a certain percentage change in its price. A formal definition of price elasticity of demand (e) is given below:

 

Posted Date: 8/10/2013 3:12:18 AM | Location : United States

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