# PED

- Created by: Ben Phillips
- Created on: 18-04-11 17:24

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**Understanding values for price elasticity of demand**

**If Ped = 0**then demand is said to be**perfectly inelastic**. This means that demand does not change at all when the price changes – the demand curve will be vertical**If Ped is between 0 and 1**(i.e. the percentage change in demand from A to B is smaller than the percentage change in price), then**demand is inelastic**. Producers know that the change in demand will be proportionately smaller than the percentage change in price**If Ped = 1**(i.e. the percentage change in demand is exactly the same as the percentage change in price), then demand is said to**unit elastic**. A 15% rise in price would lead to a 15% contraction in demand leaving total spending by…

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# PED

- Created by: Ben Phillips
- Created on: 18-04-11 17:24

**Understanding values for price elasticity of demand**

**If Ped = 0**then demand is said to be**perfectly inelastic**. This means that demand does not change at all when the price changes – the demand curve will be vertical**If Ped is between 0 and 1**(i.e. the percentage change in demand from A to B is smaller than the percentage change in price), then**demand is inelastic**. Producers know that the change in demand will be proportionately smaller than the percentage change in price**If Ped = 1**(i.e. the percentage change in demand is exactly the same as the percentage change in price), then demand is said to**unit elastic**. A 15% rise in price would lead to a 15% contraction in demand leaving total spending by…

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