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What is the price elasticity?

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Price elasticity is a measure of the relationship between a change in demand or supply of a good or service, and its price.

In economics, price elasticity is a measure of how reactive the marketplace is to a change in price for a given product. However, price elasticity works two ways. While price elasticity of demand is a reflection of consumer behavior as a result of price chance, price elasticity of supply measures producer behavior.

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