Price Elasticity of Demand Defined Generally .A measure of the responsiveness of the quantity demanded of a good to a change in the price of that good ● Formally o The percentage change in the quantity demanded that results from a 1 percent change in its price Chapter 4: Elasticity Slide 11MB MC Chapter 4: Elasticity Slide 11 Price Elasticity of Demand ◼ Defined ⚫ Generally ◆A measure of the responsiveness of the quantity demanded of a good to a change in the price of that good ⚫ Formally ◆The percentage change in the quantity demanded that results from a 1 percent change in its price