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Questions and Answers
What is price elasticity of demand (PED)?
What is price elasticity of demand (PED)?
Price elasticity of demand (PED) is a measure of how sensitive the quantity demanded is to its price. It indicates the percentage change in quantity demanded when there is a one percent increase in price, holding other factors constant.
What does a price elasticity of -2 mean?
What does a price elasticity of -2 mean?
A price elasticity of -2 means that a one percent price rise leads to a two percent decline in quantity demanded.
Are price elasticities always negative?
Are price elasticities always negative?
Yes, price elasticities are negative except in special cases.
What does it mean when a good is described as 'more elastic'?
What does it mean when a good is described as 'more elastic'?
What are Veblen and Giffen goods?
What are Veblen and Giffen goods?
What is the economic model of price determination in a market?
What is the economic model of price determination in a market?
What is the relationship between the quantity demanded and the quantity supplied in a competitive market?
What is the relationship between the quantity demanded and the quantity supplied in a competitive market?
What is the theoretical basis of modern economics?
What is the theoretical basis of modern economics?
What is the purpose of a supply schedule?
What is the purpose of a supply schedule?
What is depicted graphically as a supply curve?
What is depicted graphically as a supply curve?
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