The Great Upheaval. A Spontaneous Eruption. It started with a 10% pay cut. When leaders of the Baltimore and Ohio Railroad Company ordered this second reduction in less than eight months, railroad workers in Martinsburg, West Virginia decided they had had enough.
According to this method, âprice elasticity of demand is the ratio of percentage change in the amount demanded to the percentage change in price of the commodity.â. It is also known as the Percentage Method, Flux Method, Ratio Method, and Arithmetic Method.
Demand elasticity is often referred to as price elasticity of demand because price is most often the factor used to measure elasticity. Demand elasticity helps a company predict changes in demand based on changes in price, market entry of competitive goods, and other factors.