More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.In economics, elasticity is a measure of how sensitive demand or supply is to price.In marketing, it is how sensitive consumers are to a change in price of a product.It gives answers to questions such as:“If I lower the price of a product, how much more will sell?”“If I raise the price of one product, how will that affect sales of the other products?”“If the market price of a product goes down, how much will that affect the amount that firms will be willing to supply to the market?”We will build a linear regression model to estimate PED, and we will use Python’s Statsmodels to estimate our models as well as conduct statistical tests, and data exploration.. More details