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Price Elasticity of Demand Is a Measure of the Relative

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Price elasticity of demand is a measure of the relative responsiveness of the change in quantity demanded to a change in price.


Definitions:

Tax Rate

The fraction of earnings upon which the government imposes taxes on a person or corporate entity.

Interest Expense

The cost incurred by an entity for borrowed funds, typically presented on the income statement.

Incremental Cash Flows

The additional cash flow an entity receives from undertaking a new project or investment.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

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