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Demand — Economics STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsDemand2 Marks
Question
What is Price Elasticity of demand?
✓

Answer

  • if other factors remain constant, the Price elasticity of demand is the ratio of percentages change in demand to the percentages change in price.
  • The law of demand explains the direction of changes whereas the concept of price elasticity of demand explains the amount of change.
  • It shows the quantitative relationship between price and demand.
  • The value of Price Elasticity is represented without any unit like meter, $ \%$ etc. 
  • Generally the value of Price Elasticity is represented without any unit like meter, $ \%$ etc.
  • Generally the value of Price Elasticity of demand is negative because price and demand are inversely related to each other .

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