group 7

• PRICEC ELASTICITY

  Is a measure of how consumers react to the prices of products and services
• ELASTICITY OF DEMAND

  is a measure of how much the quantity demanded of a good or service changes in response to a change in its price.
• IF THE PED IS GREATER THAN 1, THE DEMAND IS CONSIDERED ELASTIC.
• IF THE PED IS LESS THAN 1 THE DEMAND IS INELASTIC.
• ELASTIC DEMAND

  When the demand for a product is elastic, a small change in price leads to a significant change in the quantity demanded.
• INELASTIC DEMAND

  When the demand for a product is inelastic, a change in price leads to a relatively small change in the quantity demanded.
• UNITARY ELASTICITY

  In the case of unitary elasticity, a change in price leads to an equal percentage change in quantity demanded.