U3 AOS 1 The meaning and significance of price elasticity of demand and supply

Question 1

Price Elasticity of Demand (PED)

Answer 1

measures the responsiveness of the quantity demanded of a good or service to a change in price of that good or service.

Question 2

Price Elasticity of Supply (PES)

Answer 2

measures the responsiveness of the quantity supplied of a good or service to a change in price of that good or service.

Question 3

elasticity

Answer 3

measures the responsiveness or sensitivity of the quantity of a good or service demanded or supplied when there is a change in its price.