ped Flashcards
1
Q
what is the formula for ped
A
%change in Q demanded / %change in P
2
Q
how to find % change
A
(new - old) / old
3
Q
what does SPLAT stand for
A
subsidies, percentage of income spent , luxury/necessity , addictive , time period
4
Q
if ped is <1
A
demand is inelastic
5
Q
if ped is >1
A
demand is elastic
6
Q
ped is
A
the responsiveness in quantity demanded to a change in price
7
Q
if ped =1
A
ped is unitary
8
Q
if ped = infinite
A
ped is perfectly elastic
9
Q
do luxury goods have inelastic or elastic demand
A
inelastic as if it is already expensive and luxury, a price change won’t affect it much
