How to calculate the price elasticity of demand for a product?

To calculate the price elasticity of demand for a product, you can use the formula:

Price Elasticity of Demand ( Change in Quantity Demanded) / ( Change in Price)

This formula helps you determine how sensitive consumers are to changes in price. A higher price elasticity of demand indicates that consumers are more responsive to price changes, while a lower elasticity suggests that consumers are less sensitive to price fluctuations.