Answers>Economics>A Level>Article

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

16339 Views

See similar Economics A Level tutors

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

Related Economics A Level answers

Evaluate the view that mergers always result in a lessening of competition

Why does a monopoly equate marginal revenue and marginal cost?

Why is a certain level of inflation desired?

How to identify/draw the different types of externalities