MGSS MOKA ECONOMICS - Price Elasticity of Demand (PED)

This set covers definitions, formulas, interpretations, and practice data for Price Elasticity of Demand (PED) as outlined in the MGSS MOKA Economics Grade 10 curriculum.

__________ measures the degree of responsiveness of change in quantity demanded with respect to a proportionate change in price of the good itself assuming other factors constant.

PRICE ELASTICITY OF DEMAND (PED)

The formula for PED is the % change in quantity demanded divided by the __________.

% change in price

In the mathematical formula for PED provided in the text, the variable __________ represents the original price.

OP

In the mathematical formula for PED provided in the text, the variable __________ represents the original quantity.

OQ

In Example 1, a $2\%$ fall in price causing a $4\%$ change in demand results in a PED value of __________.

$$2$$

If the PED of a product is $2$, it means that when price changes by $1\%$, the quantity demanded changes by __________.

$$2\%$$

In Example 2, with an original price of $Rs\,5$ and original quantity of $600$, the new price is $Rs\,6$ and the new quantity is __________.

$$400$$

In Example 3, the price decreases from an original value of __________ to a new value of $Rs\,5$.

$$Rs\,6$$

In Example 4, the original price is $Rs\,2$ and the new price is __________.

$$Rs\,1$$

In Example 4, the change in price from $Rs\,2$ to $Rs\,1$ results in a quantity change from $10kg$ to __________.

$$12kg$$