1.2. Market Flashcards
1
Q
What Is PED And The Formula.
A
PED ( Price Elasticity Of Demand ) mesures the responsiveness of quantity demanded given a change in price
PED = ( %∆ Qd ) / ( %∆ P )
2
Q
What is YED And The Formula
A
YED (Income Elastisity Of Demand) mesures the responsiveness of demand given a change in income.
YED = ( %∆ Qd ) / ( %∆ Y )
0 - 1 =Normal Good
1+ = Luxury Good
1- = Inferior Good
