Price elasticity of demand =-demand change rate/price change rate =-(△Q/Q)/(△P/P)=-(△Q/△P)*(P/Q)

In this question, when the price of ice cream increases from 9 yuan to 1 1 yuan, △ q = 9-1= _ 2, △ p =1-9 = 2, P=9.

(When the price of ice cream drops from 1 1 yuan to 9 yuan, △ q =1-9 = 2, △P=9- 1 1=-2, and p =/kloc-0.

Price elasticity of demand

Price elasticity of demand refers to the sensitivity of market demand of commodities to price changes. Usually expressed by the percentage of demand change and price change, that is, the elasticity coefficient of demand price. The calculation formula is divided into point elasticity formula and arc elasticity formula. The main factors affecting the elasticity of product demand are: (1) the importance of products to people's lives. Usually, the demand elasticity of daily necessities is small, and the demand elasticity of luxury goods is large. (2) the substitutability of goods. The elasticity of demand for goods that are difficult to replace is small, and the elasticity of demand for goods that are easy to replace is large. (3) How many uses does the product have? The demand elasticity of single use is small, and the demand elasticity of wide use is large. (4) the popularity of the product. The demand elasticity of products that have been popularized and saturated by society is small, and the demand elasticity of products with low popularity is large. (5) the unit price of the product. The demand elasticity of daily necessities with small unit price is small, and the demand elasticity of high-end consumer goods with large unit price is large. (6) Demand affects price.

Price elasticity of demand

Price elasticity of demand refers to the sensitivity of market demand of commodities to price changes. Usually expressed by the percentage of demand change and price change, that is, the elasticity coefficient of demand price. The calculation formula is divided into point elasticity formula and arc elasticity formula. The main factors affecting the elasticity of product demand are: (1) the importance of products to people's lives. Usually, the demand elasticity of daily necessities is small, and the demand elasticity of luxury goods is large. (2) Commodity substitution. The elasticity of demand for goods that are difficult to replace is small, and the elasticity of demand for goods that are easy to replace is large. (3) How many uses does the product have? The demand elasticity of single use is small, and the demand elasticity of wide use is large. (4) the popularity of the product. The demand elasticity of products that have been popularized and saturated by society is small, and the demand elasticity of products with low popularity is large. (5) the unit price of the product. The demand elasticity of daily necessities with small unit price is small, and the demand elasticity of high-end consumer goods with large unit price is large. (6) Demand affects price [1]

Chinese name

Price elasticity of demand

Foreign name

Price elasticity of demand

abbreviate

price flexibility

definition

Refers to the degree to which demand responds to price changes.

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Basic types define factors, relationships, meanings, policy meanings and examples of factors.

formula

In mathematical terms:

Elasticity of demand = percentage of demand change ÷ percentage of price change

Price elasticity of demand

That is, the percentage change in demand is divided by the percentage change in price. The price elasticity of demand is actually negative; That is to say, due to the law of demand, prices and demand change in reverse, prices fall and demand increases; As the price rises, the demand decreases. Therefore, the relative changes of demand and price are opposite in sign, so the elasticity coefficient of demand price is always negative. Because its sign is always the same, for the sake of simplicity, it is customary to regard demand as a positive number, because we know it is a negative number.

base type

When the change percentage of demand is greater than the change percentage of price and the elasticity coefficient of demand is greater than 1, demand is said to be elastic or highly elastic;

When the percentage of demand change is equal to the percentage of price change and the demand elasticity coefficient is equal to 1, it is called single demand elasticity;

When the change percentage of demand is less than the change percentage of price and the elasticity coefficient of demand is less than 1, it is called inelastic or low elasticity of demand.