Question

Explain price elasticity of demand.

Answer 1

Price elasticity of demand is a measure showing percentage in change in quantity demanded with respect to some percentage change in own price of the commodity.
Price elasticity of demand $\left(E_d\right)=(-)\frac{P}{Q}\times \frac{△Q}{△P}$.
Here, $△Q$ = Change in quantity demanded ; $△P$ = Change in price; Q= initial quantity; P= initial price.