A-level Business Studies Lesson 15 (3.3.2) Flashcards
1
Q
Price elasticity of demand
A
The degree to which the quantity demanded of a good or service is affected by a change in price.
2
Q
Income elasticity of demand
A
The degree to which the quantity demanded of a good or service is affected by a change in consumer income.
3
Q
Price elasticity of demand formula
A
% change in quantity demanded / % change in price
4
Q
Income elasticity of demand formula
A
% change in quantity demanded / % change in income
