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.
(1) The Percentage Method: The price elasticity of demand is measured by its coefficient E p. This coefficient E p measures the percentage change in the quantity of a commodity demanded resulting from a given percentage change in its price: Thus. Where q refers to quantity demanded, p to price and â to change. If E p p p = 1 demand is unitary elastic.
The price elasticity of demand measures thea. responsiveness of a good's price to a change in quantity demandedb. adaptability of suppliers when a change in demand alters the price of a goodc. responsiveness of quantity demanded to a change in a good's priced. adaptability of buyers when there is a change in demande.