Economics deck 1 Flashcards
1
Q
What does PED stand for?
A
Price elasticity of demand.
2
Q
What is the formula to find a products PED?
A
% change in quantity/percentage change in price.
3
Q
What makes a product elastic?
A
their demand respond rapidly to changes in factors like price or supply.
4
Q
What should the two axis be named on a PPC graph?
A
Capital goods and consumer goods.
5
Q
How do you calculate percentage change?
A
relative change=final
