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12 December, 10:51

Price elasticity of demand is defined as: a. the slope of the demand curve. b. the slope of the demand curve divided by the price. c. the percentage change in price divided by the percentage change in quantity demanded. d. the percentage change in quantity demanded divided by the percentage change in price.

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  1. 12 December, 11:12
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    Answer: Option D

    Explanation: In simple words, price elasticity refers to the degree of change in demand of a commodity with respect to change in its price. It generally shows the fact that when the price of a commodity rises the demand for ti decreases due to various phenomenon coming into force such as income effect etc.

    The price elasticity is calculated by dividing the change in quantity demanded with the change in price.
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