ped Flashcards
1
Q
how is PED calculated
A
PED=
% Change in Price/
% Change in Quantity Demanded
2
Q
What is an inelastic ped
A
∣PED∣<1, demand is inelastic. Here, the percentage change in quantity demanded is less than the percentage change in price.
2
Q
what is an elastic ped
A
∣PED∣>1, demand is elastic. This means that the percentage change in quantity demanded is greater than the percentage change in price.
3
Q
ped formula
A
% Q/%P
