Price Elasticity of Demand
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12 Terms
1
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PED
Measures the responsiveness in quantity demanded given a change in price
2
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PED Formula
Change in Percentage of Quantity Demanded/Change in Percentage of Price
3
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Percentage Change Formula
Difference/Original x 100
4
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PED always negative or positive
Negative
5
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PED >1
Price Elastic
6
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PED <1
Price Inelastic
7
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PED 0
Price Perfectly Inelastic
8
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PED 1
Unit Price Elastic
9
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What demand is this?
Perfectly Elastic Demand
10
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What demand is this?
Perfectly Inelastic Demand
11
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What elasticity is this?
Elastic
12
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What elasticity is this?
Inelastic
Note 
Flashcards (75)