What is Price Elasticity of Demand?

The proportionate change in the quantity demanded of a commodity due to a proportionate change in the price of the commodity is called Price Elasticity of Demand.

Consumers usually buy more when the price of the commodity falls and tends to buy less when the price of the commodity rises. Sometimes, with a greater change in the price of the product, the demand for that product does not change much and there can be a case where a slight change in the price of the commodity affects demand in a greater way. In Price Elasticity of Demand, the quantitative aspect of demand is studied. We will see the size of the movement of quantity demanded of a commodity related to its price. 

The Price Elasticity of Demand for any goods measures the willingness of the consumers to buy less of the goods when the price rises and more of the goods when the price falls. Price Elasticity of Demand is one of the three types of elasticity of demand. The other two types of elasticity of demand are Income Elasticity of Demand and Cross Elasticity of Demand.