Elastcicity of demand (3.1.2) 0.0 / 5 ? EconomicsElastcicity of demand (3.1.2)ASAQA Created by: lee42Created on: 24-05-19 10:05 What is the equation of Price elastcity of demand? %change in QD/ %change in price 1 of 13 What is the PED for elastic demand? It is when PED is more than 1 2 of 13 What is the PED for inelastic demand? It is when PED is less than 1 3 of 13 What is the PED for untiary elasticicty? It is when PED=1 4 of 13 What is the equation for income elasticty of demand? %change in in QD/%change in income 5 of 13 What is the YED of a normal good? Normal goods has a positive YED (YED is more than 0) 6 of 13 What is the YED of an inferior good]? Inferior goods have a negative YED (YED is less than 0) 7 of 13 What is the equation for Cross price elastcity? %change in QD of good A/%chnage in the price of good B 8 of 13 What is the XED when its a substitute good? Positive 9 of 13 What is the XED when its a complementary good? Negative 10 of 13 What does XED show if its close to zero? It shows the goods are unrelated 11 of 13 What does Perfectly elastic demand show? =+/- infinity (Any price increase will cause demand to drop to zero 12 of 13 What does Perfectly inelastic demand show? PED=zero (any price change would affect demand) 13 of 13
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