PED Flashcards
1
Q
PED formula
A
% change in QD / % change in price
2
Q
how can you tell if a product is elastic
A
if the demand changes a lot to a change in price
3
Q
how can you tell a product is inelastic
A
if the demand barley changes with a change in price
4
Q
factors affecting the PED
BULNS
A
Branded or non branded
unique selling point
legal protection
number of suppliers
how many subsitute goods?
5
Q
define PED
A
responsiveness in demand to a change in price.
