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Calc > PED > Flashcards

PED Flashcards

1
Q

What happens to luxury products as incomes rise?

A

See an increase in sales

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2
Q

What happens to necessity products as incomes rise?

A

They are seeing less proportionate sales

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3
Q

What are luxury goods?

A

Branded goods
Expensive holidays

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4
Q

What are necessity goods?

A

Own-brand
Addictions

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5
Q

How are luxury products represented?

A

1+

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6
Q

How are necessity products represented?

A

0-1

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7
Q

Formula for PED?

A

% change in demand/% change in price

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8
Q

Formula for YED

A

% change in demand/% change in income

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9
Q

What happens to inelastic products?

A

See no change/little change when a price is changed

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10
Q

What happens to elastic products?

A

If a price changes, there may be a change in demand

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11
Q

During periods of low employment, what happens to the elasticity?

A

Varies on if the product is a luxury or necessity

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12
Q

How is an elastic product represented?

A

1+

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13
Q

How is an inelastic product represented?

A

1-

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14
Q

How is a unitary product represented?

A

1

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15
Q

What does 1+ mean?

A

Change in demand is more than change in price

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16
Q

What does 1- mean?

A

Change in demand is less than change in price

17
Q

What does 1 mean?

A

Change in demand = change in price

18
Q

What is correlation?

A

A form of sales forcasting

19
Q

What does correlation show?

A

The relationship strength between two variables

20
Q

What does a positive correlation show?

A

The independent variable increases alongside the dependent variable

21
Q

What does a negative correlation show?

A

The independent variable rises, but the dependent variable falls

22
Q

What does no correlation show?

A

No relationship between variables

23
Q

What is an independent variable?

A

Causes the dependent variable to change

24
Q

What is a dependent variable?

A

Influenced by the independent variable

Calc (4 decks)

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