A change in quantity demanded describes a behavioral response to a price change, in accordance with the law of demand. |
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Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. |
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It is defined as the percentage change in quantity demanded resulting from a given percentage change in price. |
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Arc' price elasticity of demand calculates the ratio of percentage change in quantity demanded to percentage change in price using two observations on price and quantity demanded. |
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