Price Elasticity of Demand (PED) 0.0 / 5 ? EconomicsPEDASEdexcel Created by: _hats01Created on: 15-05-19 20:34 What is PED? PED measures the response of quantity demanded to changes in price 1 of 11 Price Elastic Where quantity demanded changes by a higher percentage than price 2 of 11 Price Inelastic Quantity changes by a lower percentage change in price. 3 of 11 PED = % change in QD / % change £ 4 of 11 0 perfectly elastic 5 of 11 0 - -1 Inelastic 6 of 11 -1 Unit elasticity 7 of 11 -1 -2 Elastic 8 of 11 -3 -4 Perfectly elastic 9 of 11 An elastic good Quantity demanded changes less than a % change in price. e.g. luxury goods = gucci 10 of 11 Factors influencing PED? Necessity, Substitutes, Time, The share of income a product takes 11 of 11
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