Whats difference between the price elasticity of demand along demand curve & rate of change along demand curve
Answer:
The rate of change along a demand curve is the slope of the demand curve. If the demand curve is linear, then the slope, of course, is the coefficeint on Q.
Price elasticity measures the percentage change in quantity demanded in response to 1% increase in the price of the good. Elasticity of demand is computed E=(dP/dQ)(P/Q).
The two are different ways of measuring the same thing -- response in quantity demanded to a change in price.
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