PED AND YED Flashcards
1
Q
What does PED measure
A
It measures the responsiveness of demand after a change in price
2
Q
If the PED of a product is less than 1 it is…
A
Price inelastic
3
Q
If the PED of a product it greater than 1 it is…
A
Price elastic
4
Q
What are some of the influences on PED
A
Brand strength
Necessity
Habit
Availability of substitutes
Time
5
Q
What is YED
A
The responsiveness of quantity demanded to a change in income
6
Q
What is the equation to calculate YED
A
YED = %quantity demanded/%income
