What is promotional elasticity in economics?

Can some one please explain to me what elasticity is in economics and give me examples?

  • Also, what is the formula and how do I use it? -Delta Q * P ----------- -------- Q ......... AP THANK YOU

  • Answer:

    it's (delta-Q/Q) / (delta-P / P) = delta means "change in". delta-Q/Q is relative (or percentage) change in Q. elasticity is ratio between percentage change in quantities and prices. E.g. elasticity of 2 tells you that 5% change in price will lead to 10% change in quantity

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