it refers to the the responsiveness of quantity of goods demanded by consumers when there is a change in price level. The formula PED is percentage change in quantity demanded divided by percentage change in price of that particular good.
distinguish between price elasticity of demand and income elasticity of demand
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
role of price elasticity of demand in managerial decisions
distinguish between price elasticity of demand and income elasticity of demand
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
role of price elasticity of demand in managerial decisions
Price elasticity of demand is positively correlated with the existence of substitute goods.
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
The conclusion of the price of elasticity of demand is the effect of price change based on the revenue it receives. It is based off the demand of the product and the price of the product.
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.