What does price elasticity mean？

Price elasticity refers to the degree to which the quantity demanded of a good or service changes in response to a change in its price. It is a measure of the sensitivity of demand to changes in price. If demand is highly elastic, a small change in price will result in a large change in quantity demanded. Conversely, if demand is inelastic, a change in price will have little effect on the quantity demanded. The concept of price elasticity is important for businesses and policymakers as it helps them to understand how consumers respond to changes in prices and make decisions about pricing and taxation policies.