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Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to increase in its price when nothing but the price changes.
Price elasticity of demand is a measure of the responsiveness of consumers to a change in a product's cost. ... The formula for any calculation of demand elasticity is the percentage of change in the quantity that is in demand divided by the percentage change in the economic variable.
If a small change in prize causes people demand more or a lot less of the good, demand for the good is said to be elastic.
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