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Price Elasticity
A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price, indicating sensitivity to price changes.
Quantity Demanded
The entire quantity of a product or service that buyers are prepared and have the capacity to buy at a given price point.
Midpoint Method
A formula used to calculate elasticity between two points on a demand curve, focusing on the average values to minimize bias.
Price Elasticity
How significantly the need for a good is affected by shifts in its price point.
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