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Answer: Price elasticity of demand shows the relationship between price and quantity i.e. how the quantity of the good changes when there is a price change of the good. Price elasticity of demand is calculated as the percentage change in quantity by the percentage change in price.
Food is considered to be relatively price inelastic i.e. unresponsive to the change in price. It happens because, even after the piece increase, the consumption of food cannot be lowered drastically as it is a necessity good. People will continue to consume food even after price changes because it is for the living. However, some luxury food items like chocolates, ice-creams etc. gets affected after price changes.
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