What is the price elasticity of demand compares

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What is the price elasticity of demand compares the percent change in quantity demanded relative to the percent change in price - this is done by taking the change in quantity demanded by the change in price.

Example: Price Elasticity of Demand = Percent Change in Quantity Demanded

What determines it? Percent Change in Price

What is elastic and inelastic demand? Inelastic demand for a good is inelastic when the quantity demanded is unresponsive to a change in price.

Elastic demand for a good is elastic when the quantity demanded is highly responsive to change in price.

Reference no: EM13656515

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