The formula for price elasticity of demand is the (a) percentage change in quantity demanded divided by percentage change in price

Economics Jan 16, 2021

The formula for price elasticity of demand is the (a) percentage change in quantity demanded divided by percentage change in price. (b) change in quantity demanded divided by change in price. (c) percentage change in price divided by percentage change in quantity demanded. (d) chance in price divided by change in auantitv demanded.

Expert Solution

The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price. It is an economic measure of the change in the quantity demanded or purchased of a product in relation to its price change.

Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

So, the correct option is A "percentage change in quantity divided by the percentage change in price".

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