Price elasticity of demand (
PED or
Ed) is a measure used in economics to show the responsiveness, or
elasticity, of the quantity demanded of a good or service to a change in its price,
ceteris paribus. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (
ceteris paribus, i.e. holding constant all the other determinants of demand, such as income).