Many empirical studies in marketing and economics have estimated price elasticity for specific products in markets. Their results indicate that price elasticity seem to differ across brands, product categories, retail outlets, and regions. Though there are several factors, which affect the purchasing behavior of the customer, there is a relationship, which exists between price elasticity and purchase behavior of the customer.In this paper,we have taken a sample size of 40 people and have tried to analyze the relationship between price elasticity of demand and the purchase behavior of the customer. The study shows that purchase behavior is largely affected by the price of the product and price, and demand of product follow inverse relationship as stated by the law of demand.