PED and PES

Question 1

what is PED?

Answer 1

Responsiveness of quality demanded to a change in price

Question 2

What is the equation for PED/PES?

Answer 2

%Change in Quantity/%Change in Price

Question 3

What is perfectly inelastic?

Answer 3

any %change in price, no %change in quantity

Question 4

What is inelastic?

Answer 4

%Change in Quantity < %Change in Price

Question 5

What is elastic?

Answer 5

%Change in Quantity > %Change in Price

Question 6

What is perfectly elastic?

Answer 6

any %change of quantity, no %change in price

Question 7

What is PES?

Answer 7

responsiveness of quantity supplied to a change in price

Question 8

What does it mean when the PED/PES is more than one?

Answer 8

It’s Elastic

Question 9

What does it mean when the PED/PES is less than one?

Answer 9

It’s Inelastic

Question 10

What is Unitary PED/PES?

Answer 10

When the Price Elasticity is 1, and the %Change in Quantity is equal to the Percentage Change in Price

Question 11

What is the Formula for Percentage Change?

Answer 11

((New Value - Old Value)/Old Value)*100