PED

• PED


  measures the responsiveness of the quantity demanded of a good to a change in its price
• inelastic demand


  A situation in which an increase or a decrease in price will not significantly affect demand for the product less than one
• formula for price elasticity of demand

  % change in quantity demanded / % change in price
• what products are elastic
• what products are inelastic
• elastic demand


  A situation in which consumer demand is sensitive to changes in price more than one