Price Elasticity Of Demand Flashcards
1
Q
When is price elastic??
A
When PeD is more than one.
Demand is very responsive to price, and the demand curve is fairly flat
2
Q
When is price inelastic??
A
When PeD is less than one, demand isn’t very responsive to change in price
Demand curve very steep
3
Q
What is unit elasticity??
A
When PeD= one
The % change in QD is equal to the % change in price
