7. Price Elasticity of Demand (PED) Flashcards
1
Q
Calculation of price elasticity of Demand
A
PED = ΔQD (%) / ΔP (%)
2
Q
Factors influencing PED:
A
- Time
- Competition for the same product
- Branding
- The proportion of income spent on a product
- Product types vs the product of an individual business
3
Q
Price elasticity demand
A
A change in price results in a greater change in demand
4
Q
Price elasticity of demand
A
The responsiveness of demand to a change in price
5
Q
price inelastic demand
A
A change in price results in a proportionately smaller change in demand
