-price elasticity of demand- Flashcards
1
Q
PED formula/
A
% change in quantity demanded/% change in price.
2
Q
If PED is less than one is it inelastic/elastic.
A
Price inelastic
3
Q
If PED is more than one, is it inelastic or elastic?
A
Price elastic
4
Q
What effects the PED of a product/service?
A
Brand strength. Necessity. Consumer habits. Availability of alternatives. Time (long/short term).