Price Elasticity of Demand Flashcards
1
Q
Inelastic
A
Have little/none change in demand with large change in Price.
2
Q
Elastic
A
Small changes in price create large changes in demand.
3
Q
PED Formula
A
%change in P
4
Q
PED Values
A
1 = Elastic 1 = Unit Elastic
5
Q
% Change in Price
A
Price New - Price Old
——————————— x100
Price Old
