PED

Question 1

Inelastic PED (Darapim Cancer Drug)

Answer 1

• Necessity good
• Price of Daraprim (Cancer drug) was increased by more than 50 times but demand barely changed, this is because it was a necessity

Question 2

Inelastic PED (Cigarettes in USA)

Answer 2

Cigarettes have a PED of approximately -0.4 in USA

Question 3

Elastic PED (Airline tickets)

Answer 3

Travellers going from London to Paris decreased as a result of higher airline ticket prices due to increased airport fees and charges.