Answer:
The ratio of the percent change in quantity demanded to the percent change in price.
Explanation:
Price elasticity of demand measures how responsive quantity demand is to changes in price.
The formula is given by
Price elasticity of demand= Percetage change in demand/ Percentage change in price
Usually the price elasticity bis negative. Goods that don't obey the law of demand have positive elasticity.
Answer:
The correct answer is letter "D": The ratio of the percent change in quantity demanded to the percent change in price.
Explanation:
Price Elasticity of Demand is a measure of the response of one factor to a change in another variable. It can explain the degree to which supply and demand change with the price of goods or consumer income for a good or service. We calculate elasticity by dividing the change in quantity demanded with the change in price. A result greater than or equal to 1 means a good or service is elastic; less than 1 means an inelastic good or service.
