What is Price Elasticity of Demand?

In this case, I would draw out two diagrams of a good with elastic demand and another good with inelastic demand.Price elasticity of demand is a measure to show the responsiveness of the quantity demand if the price of a good or service where to change.The formula is: Demand Elasticity= (% change in quantity demanded)/ (% change in price)I would then provide examples.An elastic good for example are motor vehicles, furniture. This is because as the price increased, the quantity demanded will decrease at a faster rate. Such goods are considered very sensitive to price.However inelastic goods have fewer substitutes and so price change doesn't affect the quantity demanded. The best example of this is gasoline- even if the price of oil increases, people are still likely to use their cars as there are no substitutes to power their car and they still need to go about doing what they have to do. In the short run they will have to accept the higher cost of oil.(Then I would go onto use numerical examples, so the student knows how to use the formula and interpret the information and relate it back to the question)