Key terms-PED(1.2.4) Flashcards
1
Q
Luxury
A
goods that consumers like to buy if they can afford them
e.g. air travels and fashion items
2
Q
Necessity
A
basic goods that consumers need to buy
e.g. food electricity and water
3
Q
Price elastic
A
quantity demand is responsive to a change in price
4
Q
PED
A
measures the responsiveness of quantity demanded to a change in price
always negative due to law of demand
5
Q
Price inelastic
A
quantity demanded for the product is less responsive proportionately to a change in price
