📈The price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
💰Elastic demand occurs when the percentage change in quantity demanded is larger than the percentage change in price.
🛒Inelastic demand means the quantity demanded is relatively insensitive to changes in price.
🔄Elasticity can be influenced by factors such as the availability of substitutes and whether the good is a necessity or luxury.
📊Determining the price elasticity of demand is essential for businesses to make informed pricing decisions.