PED Flashcards
1
Q
What does PED measure?
A
Consumers’ responsiveness to a change in a good’s price
2
Q
Formula for PED?
A
PED= % change in Q demanded/ % change in price
3
Q
Factors determining PED?
A
Substituality, Percentage of income, Necessities or Luxuries, The ‘width’ of market definition, Time
4
Q
What are the 6 influencers of PED?
A
Necessity
Addiction & Habit
Availability of substitutes
Brand loyalty
Proportion of income
Time
5
Q
Define demand
A
When consumers are willing and able to buy something
