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3-ECON-2143 Assignments > 5.1 Price Elasticity of Demand and Price Elasticity of Supply 5.1 Price Elasticity of Demand and Pr

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The correct answer is "option 3"

Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

The price elasticity of demand can be calculated using the following formula

ep=(% change in quantity demanded/% change in price)

Where ep=price elasticity of demand

The price elasticity of demand can be defined as the degree of response of a change in the quantity demanded due to a change in the price.

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