Elasticity of demand PED/YED/ZED

• Price elasticity of demand 


  Price elasticity of demand measures how sensitive the quantity demanded of a good is to a change in its price.

  PED=%𝚫QD/%𝚫P

  (Queen over prince)

  
  

  PED > 1 price is Elastic

  PED = 0 price is Perfectly inelastic

  PED < 1 price is Inelastic
• % Change in Quantity Demanded / % Change in Price