PED Flashcards
(5 cards)
1
Q
what is the definition of PED?
A
responsiveness of quantity demanded given a change in price
2
Q
what is the equation used to calculate PED?
A
%changeQD/%chnageP
3
Q
if the PED is higher than 1 what does this indicate?
A
demand is price elastic
4
Q
if the PED is lower than 1 what does this indicate?
A
demand is price inelastic
5
Q
what is the acronym for PED
A
Substitutes(number of)
Percentage of income
Luxury/neccesity
Addictive
Time
