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What is Price Elasticity?
Price elasticity reflects on the relationship between changes in the demand of the quantity of a product and change in its price. If price changes in a small amount, then for that its demand of the quantity changes. This product is said as elastic.Â Elasticity can be said inelastic when its value obtained by the formula gives the elastic value 0. It means even after changing in demand of quantity, its price demand does not change. But, in case the value increases to 1, then the term is referred to as Unit elastic. It means the value of the demand or the change in percent of demand is just equal to that of price change. But, if the percentage is high, then price elasticity will be also higher and it refers as â€˜perfect elasticâ€™.
Our expert finds out the value of the price elasticity on the basis of a formula which says, Price Elasticity in demand can be evaluated by the % change in quantity demand divided by the % change in price. Our a Price Elasticity Homework Help expert explains everything in a proper way and also the different factors related to it.
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