What is price elasticity of demand?

Price elasticity of demand (PED) shows by how much demand will increase or decrease with a change in price where 0-1 represents low PED and >1 means a high PED.If a product has a low PED (e.g. 0.5) then an increase in the price will cause a proportionately smaller decrease in demand. If a product has a high PED however (e.g. 1.5) then an increase in price will cause demand to decrease by a larger amount.