Price elasticity of demand is:
AChange in supply / change in demand
B% change in quantity demanded ÷ % change in priceCORRECT
CDemand × price
DSupply ÷ demand
CFAEconomics
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Why the answer is B, and why the others tempt you.
PED measures responsiveness of demand to price changes. > 1 elastic, < 1 inelastic.
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