Quiz

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.

A price elasticity of -2 means that a one percent price rise leads to a two percent decline in quantity demanded.

Yes, price elasticities are negative except in special cases.

<p>When a good is described as 'more elastic', it means that its elasticity has a greater magnitude, ignoring the sign.</p> Signup and view all the answers

<p>Veblen and Giffen goods are two classifications of goods, but the sentence is incomplete in the given text.</p> Signup and view all the answers

<p>Supply and demand</p> Signup and view all the answers

<p>They are equal at the current price</p> Signup and view all the answers

<p>The concept of supply and demand</p> Signup and view all the answers

<p>To show the relationship between the price of a good and the quantity supplied by producers</p> Signup and view all the answers

<p>A supply schedule</p> Signup and view all the answers