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Ct one answer only. Elasticity provides a way of measuring how sensitive demand or supply is to factors such as a change in price. Take the relationship between price and quantity demanded. We know that if price rises then people will buy less but we do not know how much less. Price elasticity of demand allows us to calculate this 1. Price elasticity of demand measures the percentage change in A caused by a percent change in B 2. If the demand for a product is.

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