PED and IED Flashcards
1
Q
PED measures
A
the responsiveness of demand to a change in price
2
Q
PED formula
A
% change in demand / % change in quantity
3
Q
IED measures
A
the responsiveness of demand to a change in household income
4
Q
IED formula
A
% change in demand / % change in income
5
Q
luxury goods have an IED of
A
more than +1
