Price elasticity of demand (PED) Flashcards

1
Q

PED formula

A

% change in quantity demanded ÷ % change in price

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2
Q

Price inelastic

A

PED < 1

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3
Q

Price elastic

A

PED > 1

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4
Q

To determine whether PED value is inelastic or elastic, does + or - matter?

A

No. Numerical value of PED is enough to determine inelastic or elastic.

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