PED, QED and XED Flashcards
meh (8 cards)
1
Q
is PED always negative or positive?
A
negative
2
Q
what is the PED formula
A
PED = %ΔQD / %ΔP
3
Q
define PED
A
PED measures the responsiveness of Quantity Demanded to a change in Price
4
Q
What does it mean when PED is bigger than 1
A
It means it is elastic. Consumers are very responsive.
5
Q
0 - 1 is
A
inelastic
6
Q
when YED is negative it is
A
an inferior good
7
Q
if YED = -0.3 what is the good
A
inferior and income inelastic
8
Q
A
