Definition
- Price elasticity of demand
- The price elasticity of demand is the percentage change in the quantity demanded of a good divided by the percentage change in its price.
- Not to be confused with: Slope
- The slope is the rate of change in units along the curve, the change in price over the change in quantity.
Test yourself
What is the difference between price elasticity of demand and slope?
Elasticity divides percentage changes and varies along a straight curve; slope divides raw changes and stays the same along it.
Learn it properly: the module
Also in: Price elasticity of supply