Respuesta :
The price elasticity of demand, which depicts changes along a demand curve, demonstrates the responsiveness of quantity demanded to a price change under the assumption that other demand-inducing factors remain constant.
Elasticity measures how sensitive one variable is to changes in another variable, most frequently the change in amount demanded in relation to changes in other factors, such price responsiveness. A product is elastic if, in reaction to price changes, the quantity requested of it changes significantly. In other words, the product's demand point has greatly expanded from its previous location. It is inelastic if the quantity purchased changes only slightly when the price changes. The ratio of percentage changes is elasticity. For instance, the slope of a demand curve is the ratio of price change to quantity change between two locations on the curve. The proportion of the percentage change in quantity to the percentage change in price is known as the price elasticity of demand. The market's reaction to price changes is measured by something called price elasticity. Elasticity plays a crucial role in pricing decisions since it enables us to determine if raising or lowering prices will allow us to meet our pricing goals. Will a discount lead to more sales.
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