100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary - PED - Price Elasticity of Demand £2.99   Add to cart

Summary

Summary - PED - Price Elasticity of Demand

The document discusses Price Elasticity of Demand (PED) and its relevance to marketing. PED measures how changes in price affect demand, which is crucial for sales revenue. It highlights the inverse relationship between price and demand: increasing prices decrease demand, while decreasing prices in...

[Show more]

Preview 1 out of 1  pages

  • July 5, 2024
  • 1
  • 2023/2024
  • Summary
All documents for this subject (3)
avatar-seller
tamarawindham
PED - Price Elasticity of Demand

Why is marketing related to PED?


- Demand is part of the Profit Formula – QTY

- Price comes into marketing objectives

- Marketing takes decisions on price


What is PED and what do you need to find out?


When you change the price of a product or a service what is the impact on demand?

You need to know this because it will affect your sales revenue (the money coming in)


General concept


- If the price is INCREASED – Demand will always go DOWN
- If the price is DECREASED – Demand will always go UP
- = Inverse relationship



Elastic – Moves a lot

Inelastic – Doesn’t move a lot



PED will always be a minus number – because when one goes up the other one goes down




Formula:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller tamarawindham. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £2.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

62799 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£2.99
  • (0)
  Add to cart