Price Elasticity Of Demand
- Created by: Connor Parsons - Team GR
- Created on: 17-01-14 09:56
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- Price Elasticity Of Demand
- Factors affecting demand
- Income
- Price of substitutes
- Advertising
- Seasonal
- Price
- Elastic/Inelastic
- Demand is price elastic when it is greater than 1
- Demand is price inelastic when it is less than 1
- Price Elasticity & Sales Revenue
- If the price is elastic, then putting up the price will lead to a fall in sales revenue
- If the price is inelastic, then putting up the price will lead to an increase in sales revenue
- Equations
- Price elasticity of demand = % change in quantity of demand over % change in price
- % change = newest figure - original. then difference over original
- Factors affecting demand
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