1.2.4 PED Flashcards
1
Q
What is the definition for PED?
A
A measure of how responsive demand is to a change in price
2
Q
What is the relationship between price and demand?
A
As price increases, quantity of demand decreases.
Inverse Relationship.
3
Q
Name five factors affecting PED.
A
- Branding
- Income
3.Substitutes - Nature of the product
- Time
4
Q
What is the coefficient for PED?
Place Necessity, Luxury and Inferior goods in the scale
A
