Revision Flashcards
1
Q
PED formula
A
% change in QD / % change in price
2
Q
YED formula
A
% change in QD / % change in income
3
Q
XED formula
A
% change in QD of good A / % change in price of good B
4
Q
PES formula
A
% change in QS / % change in price
5
Q
If PED is more than 1…
A
demand is elastic
6
Q
if YED is more than 1…
A
demand is elastic
7
Q
if XED is positive…
A
goods are substitutes
8
Q
If YED is between 0 and 1…
A
good is normal
9
Q
PES is generally…
A
positive, the higher the price the higher the supply
