Eftirspurnarverðteygni
Eftirspurnarverðteygni, commonly known as price elasticity of demand, is an economic concept that measures the responsiveness of the quantity demanded of a good or service to a change in its price. In simpler terms, it indicates how much the demand for a product will change when its price goes up or down.
The calculation for price elasticity of demand is the percentage change in quantity demanded divided by the
If the result is less than 1, demand is inelastic. This means that a change in price
A result exactly equal to 1 signifies unit elasticity, where the percentage change in quantity demanded is
Understanding price elasticity of demand is crucial for businesses when setting prices and for policymakers when