Price Elasticity Price elasticity is calculated by dividing the percentage change in unit sales demanded by the percentage change in price Demand is said to be"elastic when a small price change significantly increases or decreases demand Demand is said to be "inelastic when a price change does not significantly change the number of units demanded O Copy rights reserved, Zou Deqiang12 12 © Copy rights reserved, Zou Deqiang Price Elasticity • Price elasticity is calculated by dividing the percentage change in unit sales demanded by the percentage change in price. • Demand is said to be “elastic” when a small price change significantly increases or decreases demand. • Demand is said to be “inelastic” when a price change does not significantly change the number of units demanded