Explore the price elasticity of demand as a measure of consumer responsiveness to price changes. Discuss the formula for calculating price elasticity and analyze the factors influencing elasticity, including substitutes, necessity vs. luxury goods, and the availability of close substitutes.
Define the concept of price elasticity of demand and analyze its significance in determining consumer responsiveness to price changes. Discuss the factors influencing the price elasticity of demand and their implications for businesses and policymakers.
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