Answer:
How is the price elasticity of demand measured?
c. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price
Explanation:
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 when nothing but the price changes. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.
Answer:
C. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price
Explanation:
Elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes. To calculate the price elasticity of demand, a formula is used that divides the observed change in quantity (▲Q) by the change in price (▲P). Elasticity = ▲ Q / ▲ P. If the result is greater than 1, in module, we say that demand is elastic (price sensitive). If the result is less than 1, in module, we say that demand is inelastic (not sensitive to price changes).