PED Flashcards
1
Q
PED
A
The responsiveness of demand to a change in price
2
Q
Inelastic demand definition
A
Change in price results in a proportionately smaller change in the quantity demanded
3
Q
Elastic demand definition
A
Change in price results in a greater change in the quantity demanded
4
Q
Perfectly elastic demand
A
Demand where PED = ∞ (an increase in price will result in zero demand)
5
Q
Perfectly inelastic demand
A
Demand where PED = 0 (a change in price will result in no change in the quantity demanded)
6
Q
Unitary elastic (demand)
A
Where PED = -1 (the responsiveness of demand is proportionally equal to the change in price)
