ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.

Detailed explanation-2: -The arc price elasticity of demand measures the responsiveness of quantity demanded to a price. It takes the elasticity of demand at a particular point on the demand curve, or between two points on the curve.

Detailed explanation-3: -∴ Cross elasticity of demand is the degree of responsiveness of the demand for a commodity to a change in its price.

Detailed explanation-4: -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-5: -The price elasticity of demand (PED) measures the percentage change in quantity demanded by consumers as a result of a percentage change in price. It is calculated by dividing the “% change in quantity demanded” by the “% change in price, ” represented in the PED formula.