Price elasticity of demand is define as the

Price elasticity of demand is defined as the responsiveness of demand to changes in price. In other words, price elasticity of demand measures how much the quantity demanded of a good or service changes in response to a change in its price. If the quantity demanded of a good or service changes significantly in response to a change in price, then the demand is said to be elastic. On the other hand, if the quantity demanded of a good or service changes only slightly in response to a change in price, then the demand is said to be inelastic. For example, if the price of a luxury car increases by 10%, and as a result, the demand for that car decreases by 20%, then the demand is said to be elastic. This means that consumers are very responsive to changes in price, and a small change in price can have a significant impact on the quantity demanded. Therefore, price elasticity of demand is a measure of how sensitive consumers are to changes in price and is an important concept in economics for businesses and policymakers to consider when making decisions about pricing and taxation.