Answer:
how responsive quantity demanded is to a change in price
Explanation:
Price elasticity of demand measures how responsive quantity demanded is to a change in price.
It is measured as the percentage change in quantity demanded / percentage change in price
Demand is inelastic if price elasticity is less than 1. It means that a small change in price has not effect on quantity demanded.
Demand is elastic if price elasticity is greater than 1. It means that a small change in price has a greater effect on quantity demanded.
Demand is unitary if price elasticity is equal to 1. A small change in price has an equal impact on the quantity demanded.
Price elasticity of supply measures how responsive quantity supplied is to changes in price.
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