Question:
What is the meaning of Price Elasticity of Demand?
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What is the meaning of Price Elasticity of Demand?
Options:
Options:
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Price Elasticity of Demand quantifies how sensitive the demand for a product is to changes in its price.
Updated On: Nov 5, 2025
- Change in demand due to change in price
- Change in demand
- Change in real income
- Change in price
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The Correct Option is A
Solution and Explanation
Price Elasticity of Demand measures the responsiveness of quantity demanded to changes in the price of a good or service. It is expressed as:
\[
\text{Price Elasticity of Demand} = \frac{%\text{Change in Quantity Demanded}}{%\text{Change in Price}}.
\]
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