Question
Elasticity of demand with respect to price is
Answer: Option B
Answer: (b)
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: $e_(R) = {{DQ}/Q}/{{dP}/P}$,
where $e_(R)$ = Elasticity of demand;
dQ/ Q= % change in demand and
dP/P= % change in price.
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Answer: (b)
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: $e_(R) = {{DQ}/Q}/{{dP}/P}$,
where $e_(R)$ = Elasticity of demand;
dQ/ Q= % change in demand and
dP/P= % change in price.
Was this answer helpful ?
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