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Business-markets > Price Elasticity And Demand > Flashcards

Price Elasticity And Demand Flashcards

1
Q

How do we calculate price elasticity

A

PED=percentage change in quantity demand/percentage change in price

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2
Q

Factors influencing PEDS

A

1.availability of substitute products
2.branding
3.relative price/expense of product
4.luxury or necessity
5.time

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3
Q

What is the effect on PEDS of availability of substitute products

A

If there are no substitute products consumers need to buy them regardless. Products will end up price inelastic

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4
Q

What is the effect of branding

A

The stronger the brand the more price I elastic the product or service is

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Business-markets (6 decks)

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