Price elasticity of demand measures how changes in a price affect the quantity of the product demanded.

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Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a product to changes in its price. It can be described as the percentage change in quantity demanded in response to a percentage change in price. A high price elasticity of demand indicates that changes in price will result in significant changes in the quantity demanded, while a low price elasticity of demand suggests that changes in price will have a relatively small impact on the quantity demanded.

Price Elasticity of Demand Measures How Changes in a Price