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What is price elasticity of demand

Answer» Now as mentioned earlier, the elasticity of demand measures how factors such as price and income affect the demand for a product. Price elasticity of demand measures how the change in a product’s price affects its associated demand. Now you can measure the price elasticity of demand (PED) mathematically as follows:Price Elasticity of Demand (PED) = %\xa0change in quantity demanded / % change in price


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