1.2.4 PED Flashcards
1
Q
PED formula
A
%change in qd / %change in price
2
Q
% change eq
A
New - old / old x100
3
Q
Elastic
A
If demand fo a product changes a lot due to price changes e.g snacks
4
Q
Inelastic
A
If demand for a product doesn’t change much with a change in price e.g petrol
5
Q
Is an apple iPhone inelastic or elastic?
A
Inelastic as lots of consumers want consider other alternatives due to aesthetics/quality
6
Q
Is a packet of walkers crisps elastic or inelastic?
A
Elastic (more expensive may get different crisps such as baked which may be cheaper cause not necessity)
7
Q
Is PED is between 0 and 1 then demand is…
A
Inelastic
8
Q
If ped is less than 1 then demand is…
A
Elastic
