P.E.D in different market strucutres Flashcards
1
Q
what is P.E.D if there are lots of substitute goods
A
elastic because consumers can move to substitutes easily
2
Q
what is P.E.D if there are highly differentiated products
A
price inelastic because there are little to no substitutes
3
Q
what is the concentration ratio
A
the percent of market share owned by a number of firms i.e big four
4
Q
what happens if you have a higher market share
A
more power
