Price Elasticity of Demand: Meaning and Types

This video explains the meaning and types of elasticity of demand.

The elasticity of demand measures the magnitude of the change in quantity demanded due to change in price of the commodity and it is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

There are five types of price elasticity of demand.

1. Perfectly Inelastic Demand
2. Perfectly Elastic Demand
3. Inelastic Demand
4. Elastic Demand
5. Unit Elastic Demand

Higher the elasticity of demand the flatter the demand curve and vice versa.

Types