class 12 economics notes price elasticity of demand
Price elasticity of Demand ..........short and easy notes for board exam. 1. What do you mean by price elasticity of demand? > It is the ratio of percentage change in quantity demand of a commodity to percentage change in price. Elasticity of demand (E.D) = % change in demand / % change in price But elasticity of demand is negative because there is inverse relationship between the demand of goods and its price. 2. Write the degrees of elasticity of demand. > there are five degree of elasticity of demand; Relatively elastic demand - Small changes in price, greater change in demand, this situation is called relatively elastic demand. Uni t elastic demand - change in demand equal to change in price, it is called unit elastic demand. ...