price elasticity of demand

Question 1

what is ped?

Answer 1

it is used to measure the responsiveness of consumers to a change in price

Question 2

what is the equation of ped?

Answer 2

percentage change of quantity demanded/percentage change in price

Question 3

what is price inelastic?

Answer 3

when consumers are fairly unresponsive to a change in price. it is notated as anything less than one

Question 4

what is price elastic?

Answer 4

when consumers are fairly responsive to a change in price. it is notated as anything more than 1

Question 5

what is unitary price elastic?

Answer 5

when a change in demand is directly proportional to a change in price. it is notated as 1

Question 6

what is price perfectly elastic?

Answer 6

when a change in price leads to zero quantity demanded. it is notated as infinity

Question 7

what is price perfectly inelastic?

Answer 7

when a change in price has no impact on quantity demanded and is notated as 0

Question 8

what is sales revenue?

Answer 8

the total revenue made by a firm. price multiplied by quantity demanded

Question 9

what is profit?

Answer 9

total cost subtracted from total cost