5 Questions
What does Price Elasticity of Demand (PED) measure?
Percentage change in quantity demanded for a percentage change in price
How do consumers behave if the Price Elasticity of Demand (PED) is high?
They buy less when prices increase
What does Income Elasticity of Demand (YED) measure?
Percentage change in quantity demanded for a percentage change in income
What does a positive Income Elasticity of Demand (YED) indicate?
Consumers buy more of a product as their income increases
How does the availability of substitutes affect the elasticity of demand?
If there are many substitutes available, demand is likely to be more elastic
Learn about the fundamental economic concept of elasticity of demand and its types, including price elasticity of demand (PED). Understand how different factors like price, income, and substitute goods affect the responsiveness of quantity demanded. Ideal for students and businesses looking to analyze the impact of price changes.
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