{"id":2160,"date":"2019-08-01T09:21:06","date_gmt":"2019-08-01T09:21:06","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2160"},"modified":"2019-08-01T09:21:06","modified_gmt":"2019-08-01T09:21:06","slug":"measurement-of-price-elasticity-of-demand","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/","title":{"rendered":"MEASUREMENT OF PRICE ELASTICITY OF DEMAND"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#PRICE_ELASTICITY_OF_DEMAND\" title=\"PRICE ELASTICITY OF DEMAND\">PRICE ELASTICITY OF DEMAND<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"MEASUREMENT OF PRICE ELASTICITY OF DEMAND \">MEASUREMENT OF PRICE ELASTICITY OF DEMAND <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#TOTAL_EXPENDITURE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"TOTAL EXPENDITURE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND\">TOTAL EXPENDITURE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#PROPORTIONATE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"PROPORTIONATE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND\">PROPORTIONATE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#GEOMETRIC_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"GEOMETRIC METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND\">GEOMETRIC METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#ARC_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"ARC METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND\">ARC METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/#REVENUE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\" title=\"REVENUE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND\">REVENUE METHOD OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-medium-font-size\"><a rel=\"noreferrer noopener\" aria-label=\"Price Elasticity of demand (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\" target=\"_blank\">Price Elasticity of demand<\/a> is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other factors remaining the same. There are three methods for measurement of Price Elasticity of Demand which are recommended by <strong>Professor Marshall<\/strong>.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span>MEASUREMENT OF PRICE ELASTICITY OF DEMAND <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"total-expenditure-method-of-measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"TOTAL_EXPENDITURE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>TOTAL EXPENDITURE METHOD<\/strong> <strong>OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">This method is given by <strong>Prof. Marshall<\/strong>. This method states that elasticity of demand can be measured from the changes in the expenditure of consumers on the commodity as its price changes. This method is also known as Total Outlay method. <\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>Total Expenditure= Price * Quantity demanded<\/strong><\/p>\n\n\n\n<p><strong>THREE SITUATIONS<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">If with the fall in the price, demand rises, the total\nexpenditure also rises. It is the case of luxury goods. In this case, the\ndemand will be more elastic i.e. E<sub>d<\/sub>&gt;1.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">If with the fall in the price, demand rises, the total\nexpenditure becomes constant. It is the case of goods which are comfort of life.\nIn this case, the demand will be unitary elastic i.e. E<sub>d<\/sub>=1.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">If with the fall in the price, demand rises, the total\nexpenditure also falls. It is the case of goods which are necessities of life.\nIn this case, the demand will be less elastic i.e. E<sub>d<\/sub>&lt;1.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">This method to measure the price elasticity of demand can be\nexplained with the help of the table:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e9fbe5\"><tbody><tr><td><strong>   PRICE   <\/strong><\/td><td><strong>   QUANTITY DEMANDED   <\/strong><\/td><td><strong>   TOTAL EXPENDITURE   <\/strong><\/td><td><strong>   ELASTICITY OF DEMAND   <\/strong><\/td><td><strong>   DIRECTION OF PRICE   <\/strong><\/td><td><strong>   DIRECTION OF TOTAL EXPENDITURE   <\/strong><\/td><\/tr><tr><td>   10<br \/>   9<br \/>   8<br \/>   7   <\/td><td>   1<br \/>   2<br \/>   3<br \/>   4   <\/td><td>   10<br \/>   18<br \/>   24<br \/>   28   <\/td><td>\n  GREATER THAN UNITY\n  <\/td><td>\n  DECREASES\n  <\/td><td>\n  INCREASES\n  <\/td><\/tr><tr><td>   6<br \/>   5   <\/td><td>   5<br \/>   6   <\/td><td>   30<br \/>   30   <\/td><td>\n  EQUAL TO UNITY\n  <\/td><td>\n  DECREASES\n  <\/td><td>\n  CONSTANT\n  <\/td><\/tr><tr><td>   4<br \/>   3<br \/>   2<br \/>   1   <\/td><td>   7<br \/>   8<br \/>   9<br \/>   10   <\/td><td>   28<br \/>   24<br \/>   18<br \/>   10   <\/td><td>\n  LESS THAN UNITY\n  <\/td><td>\n  DECREASES\n  <\/td><td>\n  DECREASES\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">This can also be explained with the help of the curve:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"253\" height=\"238\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/clip_image014.jpg\" alt=\"TOTAL EXPENDITURE METHOD\" class=\"wp-image-2194\"\/><figcaption>TOTAL EXPENDITURE METHOD<\/figcaption><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">In the figure from the point P<sub>3<\/sub> to P<sub>2<\/sub>,\nthe price falls but total expenditure increases and result in the elasticity of\ndemand being more than one. When the price falls from P<sub>2<\/sub> to P<sub>1<\/sub>,\nthe total expenditure becomes constant and the elasticity of demand becomes\nunitary. From point P<sub>1<\/sub> to O, the price falls and total expenditure\nalso falls which makes the elasticity of demand less than one. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"proportionate-method-of-measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"PROPORTIONATE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>PROPORTIONATE METHOD<\/strong> <strong>OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">This method is also given by Prof. Marshall. According to\nthis method, price elasticity of demand is the ratio of percentage or\nproportionate change in demand to percentage change in price. In order to\nmeasure price elasticity of demand, the proportionate change in quantity\ndemanded is divided with the proportionate change in the price. This method is\nalso known as Percentage Method. <\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>Price Elasticity of demand = (-) Proportionate change in demand of the commodity\/ Proportionate change in the price.<\/strong><\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>(-) (change in demand\/ original demand) \/ (change in price \/ original price)<\/strong><\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>(-) (\u2206Q\/ Q) \/ (\u2206P\/P)<\/strong><\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>(-) (\u2206Q\/Q * P\/ \u2206P)<\/strong><\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"geometric-method-of-measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"GEOMETRIC_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>GEOMETRIC METHOD<\/strong> <strong>OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">This method is also given by Prof. Marshall. This method is\nused to measure price elasticity of demand at any point on straight line demand\ncurve. According to this method, to measure the price elasticity of demand on\nany given point of a straight line demand curve, the lower part of the demand\ncurve from that point is divided by the upper part of the demand curve. That is\nwhy thus method is also known as Point Method.<\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background has-medium-font-size\"><strong>Price Elasticity of Demand = Lower part of demand curve\/ Upper part of demand curve. <\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">It can be shown as:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"761\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/PED1-1024x761.jpg\" alt=\"GEOMETRIC METHOD\n\" class=\"wp-image-2162\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/PED1-1024x761.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/PED1-300x223.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/PED1-768x571.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/08\/PED1.jpg 1517w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">The demand curve shows the various degrees of price elasticity of demand using the geometric method. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"arc-method-of-measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"ARC_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>ARC METHOD<\/strong> <strong>OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Any two points on a demand curve make an\narc, and the coefficient of price elasticity of demand of an arc is known as\narc elasticity of demand. This method is used to find out price elasticity of\ndemand over a certain range of price and quantity. Thus, this method is applied\nwhile calculating PED when price or quantity demanded of the commodity is\nhighly changed.<\/p>\n\n\n\n<p><strong>ACCORDING TO PROF. BAUMOL<\/strong><\/p>\n\n\n\n<p>\u201cArc elasticity is a measure of\nthe average responsiveness to price change exhibited by a demand curve over\nsome finite stretch of the curve.\u201d <\/p>\n\n\n\n<p><strong>ACCORDING TO WATSON<\/strong><\/p>\n\n\n\n<p>\u201cArc elasticity is the elasticity\nat the mid-point of an arc of a demanded curve.\u201d<\/p>\n\n\n\n<p><strong>ACCORDING TO LEFTWICH<\/strong><\/p>\n\n\n\n<p>\u201cWhen elasticity is computed\nbetween two separate points on a demand curve, the concept is called Arc\nelasticity.\u201d <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"573\" height=\"457\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/ARC-1.png\" alt=\"ARC 1.png\" class=\"wp-image-3550\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/ARC-1.png 573w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/ARC-1-300x239.png 300w\" sizes=\"(max-width: 573px) 100vw, 573px\" \/><\/figure>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"revenue-method-of-measurement-of-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"REVENUE_METHOD_OF_MEASUREMENT_OF_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>REVENUE METHOD<\/strong> <strong>OF MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Mrs. Joan Robinson <\/strong>has given this method. She says that elasticity of demand can be measured with the help of average revenue and marginal revenue. Therefore, sale proceeds that a firm obtains by selling its products are called its revenue. However, when total revenue is divided by the number of units sold, we get average revenue.<\/p>\n\n\n\n<p>On the contrary, when addition is made to the\ntotal revenue by the sale of one more unit of the commodity is called marginal\nrevenue. Therefore, the formula to measure elasticity of demand can be written\nas,<\/p>\n\n\n\n<p><strong>E<sub>A&nbsp;<\/sub>= A\/ A-M<\/strong><\/p>\n\n\n\n<p>Where E<sub>d<\/sub>&nbsp;represents\nelasticity of demand, A = average revenue and M = marginal revenue. This method\ncan be explained with the help of a diagram.<\/p>\n\n\n\n<p>In this diagram, revenue has been shown on\nOY- axis while quantity of goods on OX-axis. AB is the average revenue or\ndemand curve and AN is the marginal revenue curve. At point P on demand curve,\nelasticity of demand is calculated with the formula,<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"487\" height=\"400\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/arc-2.jpg\" alt=\"arc 2.jpg\" class=\"wp-image-3551\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/arc-2.jpg 487w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/arc-2-300x246.jpg 300w\" sizes=\"(max-width: 487px) 100vw, 487px\" \/><\/figure>\n\n\n\n<p>In this way, value of Ep is one which means that price elasticity of demand is unitary. Similarly, if it is more than one, price elasticity of demand is greater than one and if it is less than one, price elasticity of demand is less than unity.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"MEASUREMENT OF PRICE ELASTICITY OF DEMAND\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>MEASUREMENT OF PRICE ELASTICITY OF DEMAND<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>PRICE ELASTICITY OF DEMAND Price Elasticity of demand is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other factors remaining the same. There are three methods for measurement of Price Elasticity of&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/measurement-of-price-elasticity-of-demand\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;MEASUREMENT OF PRICE ELASTICITY OF DEMAND&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,92],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2160"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2160"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2160\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2163"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}