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Economics 📉 > Price Elasticity Of Demand > Flashcards

Price Elasticity Of Demand Flashcards

1
Q

Price elastic demand

A

Where the price elasticity of demand is greater than 1. The responsiveness of demand is proportionally greater than the change in price

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2
Q

Perfectly elastic demand

A

If PED is infinity

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3
Q

Price inelastic demand

A

Where the price elasticity of demand is less than 1. The responsiveness of demand is proportionally less than the change in price

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4
Q

Perfectly inelastic demand

A

If PED is 0

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5
Q

Price elasticity of demand

A

A measure of the responsiveness of demand to change in price

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6
Q

Unitary price elasticity of demand

A

Where the value of price elasticity of demand is 1. The responsiveness of demand is proportionally equal to the change in price

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7
Q

Total expenditure

A

Quantity bought x the average price of a product

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8
Q

Total revenue

A

Quantity sold x the average price of the product

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Economics 📉 (17 decks)

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