PRICE ELASTICITY OF DEMAND Formula | Meaning of Price Elasticity of Demand | Consumer Behaviour
Published at : November 19, 2021
Price Elasticity of demand is the degree of responsiveness of quantity demanded to a change in price. It reflects how sensitive the buyers are in relation to change in price.
Accordingly, price elasticity of demand (Ed) may be defined as a measurement of percentage change in quantity demanded in response to a given percentage change in price of the commodity.
Formula for Price Elasticity of Demand as per percentage method is as follows:
Ed = (-) Proportionate Change in Quantity Demanded
Proportionate Change in Price
Ed = (-) Change in Demand / Initial Demand x 100
Change in Price / Initial Price x 100
Ed = (-) P. ∆Q
Q. ∆P
It must be noted that elasticity of demand always measures the percentage change in price of the commodity and its quantity demanded thereby comparison of the elasticity of two or more products is facilitated.
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This channel helps you understand the concepts related to :
Class 11 Accountancy
Class 11 Economics
Class 12 Accountancy
Class 12 Economics
CA and CS Foundation basics
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CA Manish Mahajan is a first class commerce graduate from Panjab University, having done his graduation in B.Com (Finance Hons.) from GGDSD College, Chandigarh. He qualified Chartered Accountancy course in 2010 and was placed in merit list (31st All India Rank in Final and 22nd All India Rank in Foundation). He possesses a vast experience of more than 15 Years in teaching Accountancy, Economics and Mathematics to the students of Classes +1 and+2 and also mentored the students of B.Com and CA. He has authored the books on Accountancy, Economics and Indirect Tax Laws. His unique lecture delivery and practical method of teaching, helps the student to easily grasp and remember the subject.
This Channel provides all the educational content for the students of class 11 and class 12 for subjects Accounts and Economics. Here you get regular & organized content for complete course study.
CA Manish Mahajan
Mbl: 7888695588
Concepts Commerce Academy
Email: getrightconcepts@gmail.com
My website: https://conceptsacademy.in/
https://www.facebook.com/Conceptscommerceacademy
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https://play.google.com/store/apps/details?id=co.jarvis.ccac&hl=en
#elasticityofdemand #priceelasticityofdemand #demandelasticity #demand #consumerdemand #quantitydemanded #demandschedule #theoryofdemand #microeconomics #class11 #consumerbehaviour
Accordingly, price elasticity of demand (Ed) may be defined as a measurement of percentage change in quantity demanded in response to a given percentage change in price of the commodity.
Formula for Price Elasticity of Demand as per percentage method is as follows:
Ed = (-) Proportionate Change in Quantity Demanded
Proportionate Change in Price
Ed = (-) Change in Demand / Initial Demand x 100
Change in Price / Initial Price x 100
Ed = (-) P. ∆Q
Q. ∆P
It must be noted that elasticity of demand always measures the percentage change in price of the commodity and its quantity demanded thereby comparison of the elasticity of two or more products is facilitated.
.
.
.
.
.
This channel helps you understand the concepts related to :
Class 11 Accountancy
Class 11 Economics
Class 12 Accountancy
Class 12 Economics
CA and CS Foundation basics
.
.
.
.
CA Manish Mahajan is a first class commerce graduate from Panjab University, having done his graduation in B.Com (Finance Hons.) from GGDSD College, Chandigarh. He qualified Chartered Accountancy course in 2010 and was placed in merit list (31st All India Rank in Final and 22nd All India Rank in Foundation). He possesses a vast experience of more than 15 Years in teaching Accountancy, Economics and Mathematics to the students of Classes +1 and+2 and also mentored the students of B.Com and CA. He has authored the books on Accountancy, Economics and Indirect Tax Laws. His unique lecture delivery and practical method of teaching, helps the student to easily grasp and remember the subject.
This Channel provides all the educational content for the students of class 11 and class 12 for subjects Accounts and Economics. Here you get regular & organized content for complete course study.
CA Manish Mahajan
Mbl: 7888695588
Concepts Commerce Academy
Email: getrightconcepts@gmail.com
My website: https://conceptsacademy.in/
https://www.facebook.com/Conceptscommerceacademy
https://www.instagram.com/Conceptscommerceacademy
https://play.google.com/store/apps/details?id=co.jarvis.ccac&hl=en
#elasticityofdemand #priceelasticityofdemand #demandelasticity #demand #consumerdemand #quantitydemanded #demandschedule #theoryofdemand #microeconomics #class11 #consumerbehaviour
CA Manish MahajanPRICE ELASTICITY OF DEMAND FormulaMeaning of Price Elasticity of Demand