Price Elasticity Of Demand

What Does Price Elasticity Of Demand Mean?
A measure of the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as:

Investopedia explains Price Elasticity Of Demand
If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). The opposite also applies, a product is inelastic if a large change in price is accompanied by a small amount of change in demand.

Related Terms

Cross Elasticity Of Demand
Economics
Elastic
Income Elasticity Of Demand
Inelastic
Pricing Power
Quantity Demanded
Tax Incidence
Total Revenue Test
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