PED Flashcards
1
Q
diagram for perfectly price inelastic
A
vertical line
2
Q
diagram for perfectly price elastic
A
horizontal line
3
Q
PED for perfectly price inelastic
A
PED = 0
4
Q
PED for perfectly price elastic
A
PED = infinity
5
Q
perfectly price inelastic
A
consumers willing and able to pay any price
equilibrium markets - price still the same
6
Q
perfectly price elastic
A
competitive markets
all firms sell he same product at the same price
7
Q
PED > 1
A
elastic
8
Q
PED < 1
A
inelastic
9
Q
PED = 1
A
unit price elastic
10
Q
more substitutes
A
more elastic
11
Q
less substitutes
A
more inelastic
12
Q
luxury
A
elastic
13
Q
necessities
A
inelastic
14
Q
PED =
A
% change in quantity demanded / % change in price
