Measurement of price elasticity
Measurement of price elasticity
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Newton D
The price elasticity of demand is measured by its coefficient (Ep). This coefficient (Ep) measures the percentage change in the quantity of a commodity demanded resulting from a given percentage change in its price. Where q refers to quantity demanded, p to price and Δ to change. If EP>1, demand is elastic.
manish1008
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. There are four methods of measuring elasticity of demand. They are the percentage method, point method, arc method and expenditure method.
Ayush
The price elasticity of demand is measured by its coefficient (Ep). This coefficient (Ep) measures the percentage change in the quantity of a commodity demanded resulting from a given percentage change in its price. Where q refers to quantity demanded, p to price and Δ to change. If EP>1, demand is elastic.