Calculating price elasticity - 0 views
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Price elasticity is a measure of how demand for a product is influenced by price changes
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To calculate the price elasticity (PE) PE = [(Q2-Q1) / ((Q1+Q2) / 2 )] / [(P2-P1) / ((P1+P2) / 2]
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Where Q1 = initial quantity; Q2 = final quantity; P1 = initial price; P2 = final price
