Price Elasticity of Demand

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1
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What is the definition of price elasticity of demand?

The sensitivity of demand to changes in price

2
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What is meant by ‘price elastic demand’?

Demand is very sensitive to price - the % change in demand will be bigger than the % change in price

3
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What is meant by ‘perfectly price elastic demand’?

If we increase price by even 1%, we lose all demand

4
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Draw a price inelastic demand curve

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