elasticity 2.0 / 5 based on 1 rating ? EconomicsThe company, revenue and costsASAQA Created by: safwanCreated on: 19-02-13 10:52 what is the concept of elasticity? the concept of elasticity tries to identify the impact of changes that one variable has on another variable. 1 of 5 what is price elasticity of demand? Price of elasticity of demand refers to how much demand changes when there is a change in price 2 of 5 what is the formula of PED? % change in the quantity demanded / % change in price 3 of 5 If price elasticity of demand is above 1, what does this mean? if PED is above 1 it means price elastic demand, for example, a fall in price means demand rises by proportionately more than the price cut. 4 of 5 why is PED very helpful to businesses? PED is helpful because it helps businesses to set their prices for goods and services or whether to alter prices (their business planning) 5 of 5
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