Define the concept of elasticity of demand and explain how t

Define the concept of elasticity of demand and explain how to measure the concept using dada on prices and utilization.

Solution

Price elasticity of demand is a measure between a change in the quantity demanded of a particular good and a change of price of a good i.e when a particular good is in high demand or low demand then what will it affect on its pricing

It is calculated by dividing the change in quantity demanded by the change in price of a good.

Ped=change in quantity/change in price.

Ped measure the response of customer when price changes