Price elasticity of demand (PED) Flashcards
1
Q
PED formula
A
% change in quantity demanded ÷ % change in price
2
Q
Price inelastic
A
PED < 1
3
Q
Price elastic
A
PED > 1
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.