Please summarize these (3) parts in ( 3) paragraphs.

Part one:

What Is Price Elasticity of Demand?

Price elasticity of demand is a measurement of the change in the consumption of a product in relation to a change in its price. Expressed mathematically, it is:

Price Elasticity of Demand = Percentage Change in Quantity Demanded Percentage Change in Price Economists use price elasticity to understand how supply and demand for a product change when its price changes.1 Like demand, supply also has an elasticity, known as price elasticity of supply. Price elasticity of supply refers to the relationship between change in supply and change in price. It's calculated by dividing the percentage change in quantity supplied by the percentage change in price. Together, the two elasticities combine to determine what goods are produced at what prices.

Part two:

Factors That Affect Price Elasticity of Demand

Availability of Substitutes

The more easily a shopper can substitute one product for another, the more the price will fall. For example, in a world in which people like coffeeand tea equally, if the price of coffeegoes up, people will have no problem switching to tea, and the demand for coffeewill fall. This is because coffeeand teaare considered good substitutes for each other.

Urgency

The more discretionary a purchase is, the moreits quantity of demand will fall in response to price increases. That is, the product demand has greater elasticity. Say you are considering buying a new washing machine,but the current one still works; it's just old and outdated. If the price of a new washing machine goes up, you're likely to forgo that immediate purchase and wait until prices go down or the current machine breaks down.

The less discretionary a product is, the less its quantity demandedwill fall. Inelastic examples include luxury items that people buy for their brand names. Addictive products are quite inelastic, as are required add-on products, such as inkjet printer cartridges. One thing all these products have in common is that they lack good substitutes. If you really want an Apple iPad, then a Kindle Fire won't do. Addicts are not dissuaded by higher prices, and only HP ink will work in HP printers (unless you disable HP cartridge protection).

Duration of Price Change

The length of time that the price change lasts also matters.3 Demand response to price fluctuations is different for a one-day sale than for a price change that lasts for a season or a year. Clarity of time sensitivity is vital to understanding the price elasticity of demand and for comparing it with different products. Consumers may accept a seasonal price fluctuation rather than change their habits.

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Part three: ( all questions in one paragraph)

What is price elasticity of demand?

Price elasticity of demand is the ratio of the percentage change in quantity demanded of a product to the percentage change in price. Economists employ it to understand how supply and demand change when a product's price changes.

What makes a product elastic?

If a price change for a product causes a substantial change in either its supply or its demand, it is considered elastic. Generally, it means that there are acceptable substitutes for the product. Examples would be cookies, luxury automobiles, and coffee.

What makes a product inelastic?

If a price change for a product doesn't lead to much, if any, change in its supply or demand, it is considered inelastic. Generally, it means that the product is considered to be a necessity or a luxury item for addictive constituents. Examples would be gasoline, milk, and iPhones.

What is the importance of price elasticity of demand?

Knowing the price elasticity of demand of a good allows someone selling that good to make informed decisions about pricing strategies. This metric provides sellers with information about consumer pricing sensitivity. It is also key for makers of goods to determine manufacturing plans, as well as for governments to assess how to impose taxes on goods.