Calculating Elasticity of Demand [GIVEN A CHANGE IN PRICE]

To calculate the elasticity of demand given a change in price, we can use the formula:

[ E_d = \frac{% \text{ Change in Quantity Demanded}}{% \text{ Change in Price}} ]

This formula allows us to understand how sensitive consumers are to price changes, indicating whether demand is elastic (greater than 1), inelastic (less than 1), or unitary elastic (equal to 1).