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Elasticity of demand with respect to price is
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elasticity = %change in demand %change in price
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elasticity = %change in price %change in demand
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elasticity = %change in demand %change in supply
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elasticity = %change in supply %change in price
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Correct Option: A
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. The formula for the coefficient of price elasticity of demand for a good is:
| e(R) = | |
| DP / |
where e(R) = Elasticity of demand; dQ/ Q= % change in demand and dP/P= % change in price.
