The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in Price. The quantity change in percentage terms divided by the price change in percentage terms is used to compute the price elasticity of demand.
Demand Elasticity or Demand Elasticity is a measure of how much the amount of a product is changed in demand in reaction to a change in any market factor, such as price, income, etc. It tracks changes in demand brought on by alterations in other economic factors.
Elastic Demand is when a shift in price causes a significant shift in the quantity demanded. Consumer durables are an example of a product with elastic demand. Like a washing machine or a car, these are infrequently acquired things that can be put off if the price increases.
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