Price Elasticity of Demand Flashcards
1
Q
Explain PRICE ELASTICITY OF DEMAND (PED)
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2
Q
What is the formula for Price Elasticity of Demand (PED)?
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3
Q
Describe what is meant by price ELASTIC demand
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4
Q
Describe what is meant by price INELASTIC demand
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5
Q
Draw a diagram to show how an increase in the price of ‘price inelastic food products’ would affect total revenue.
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6
Q
Explain, using a diagram, why it is important for firms to consider the price elasticity of demand of their products when making pricing decisions.
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7
Q
Explain factors which affect the price elasticity of demand for goods and services.
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8
Q
What is the importance of Price Elasticity of Demand?
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