PED Flashcards
1
Q
Percentage change formula?
A
Old - New
—————- X100
Old
2
Q
What’s PED?
A
The change of responsiveness in demand from a change in price.
3
Q
What does it mean when PED > 1 ?
A
PED is elastic.
4
Q
What does it mean when PED < 1 ?
A
PED is inelastic.
5
Q
What does it mean when PED = 1 ?
A
PED is perfectly elastic.
6
Q
How do you calculate total revenue?
A
Price X Quantity
7
Q
What is total expenditure equal to?
A
Total revenue.
8
Q
What’s the formula for PED?
A
%CHNG in QD / %CHNG in Price
9
Q
What’s the formula for percentage change?
A
Old - New
————— X100
Old
