ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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% change quantity supplied/% change in price
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change in quantity supplied/change in price
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% change in quantity demanded/% change in price
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change in quantity demanded/change in price
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Detailed explanation-1: -The price elasticity of demand measures the responsiveness of quantity demanded to changes in price; it is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
Detailed explanation-2: -The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-3: -The price elasticity of demand is calculated as the percentage change in the quantity demanded divided by the percentage change in the price. We calculate the change in price as the percentage of the average price and the change in the quantity demanded as the percentage of the average quantity.
Detailed explanation-4: -The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq dp .