Which of the following can be used to calculate the price elasticity of demand?
-
\(\frac{\text{percentage change in quatity demand}}{\text{percentage change in price}}\)
- \(\frac{\text{percentage change in price}}{\text{percentage change inquantity demand}}\)
- \(\frac{\text{percentage change in quality demand}}{\text{percentage change in income}}\)
- \(\frac{\text{percentage change in income}}{\text{percentage change in quantity demand}}\)
The correct answer is: A
Explanation
The price elasticity of demand is calculated as the;
percentage change in quantity demanded
percentage change in price