Elasticity

Question 1

Formula of PED

Answer 1

PED= change in quantity demanded/ change in price

Question 2

equilibrum

Answer 2

where demads meet supply

Question 3

price elasticity

Answer 3

of demand (ped) measures how much the auantity demaded of a good changes when the price changes

Question 4

inelastic demad

Answer 4

means that a change in price leads to a smaller percentage change in demad

Question 5

how can a business make their product less elastic?

Answer 5

a business can make their product less elastic by taking several strategic actions

Question 6

Revenue means

Answer 6

The income that a company receives from its business activities

Question 7

What is PES

Answer 7

PES is a way to measure how much the amount of a good or service that business are willing to sell changes when the price of that good or service changes

Question 8

2 factors of PED and affect

Answer 8

Brand strength: product with a strong brand loyalty and reputation tend to be price in elasticity
Necessity: the more necessary a product the more demands tends to be in elasticity