Computations of the price elasticity focus on the calculated magnitude due to of the law of demand.

Question

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The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. This is in accordance with the law of demand, which states that as the price of a good or service increases, the quantity demanded will decrease, and vice versa. Therefore, computations of the price elasticity do focus on the calculated magnitude due to the law of demand.

Computations of the Price Elasticity Focus on the Calculated Magnitude