6 Price Elasticity of Demand Flashcards
1
Q
Define PED
A
The responsiveness of demand to a change in price.
2
Q
Define inelastic demand
A
Change in price but a small change in quantity demand
3
Q
Defien Elastic Demand
A
Change in price big change in quantity demanded
4
Q
Formula for PED
A
PED=perecentage change in QD divide by percentage change in price
5
Q
Define Perfectly elastic
A
demand where ped = infinity
Horizontal Curve
6
Q
Define perfectly inelastic
A
demand where ped =0
have vertical curve
7
Q
Define unitary elasticity
A
where ped =-1
8
Q
Factors affect ped
A
Neccesity
avaialabity of subsititues
income spent on product
time
9
Q
Unitary elastic in pes
A
PES=1
10
Q
Factors affect PES
A
Space Capacity
Availablity of stocks
Factors of production
Time
