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What is price elasticity of demand and how is it measured?

Price elasticity of demand (PED) measures the responsiveness of percentage change in the quantity demanded of a good with respect to a percentage change in the price of a good. It is measured by the formula: %change in quantity demanded/ % change in price.

Answered by Hadiqa Z. • Economics tutor

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What is price elasticity of demand and how is it measured?

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