Exam (elaborations)
PED AND PES questions and answers already passed 2024
- Module
- Institution
PED AND PES questions and answers already passed 2024
[Show more]
Seller
Follow
LEWISSHAWN55
Reviews received
Content preview
PED AND PESPED Definition and Formula - correct answer ✔The responsiveness of the
quantity demanded following a change in price.
PED = % Change in QD/ % Change in Price
Price Elastic Demand - correct answer ✔PED > 1
The percentage change in QD is greater than the percentage change in price.
Eg. Luxury cars
Price Inelastic Demand - correct answer ✔PED < 1
The percentage change in QD is smaller than the percentage change in price.
Eg. Gasoline
Perfectly Elastic, Perfectly Inelastic, Unit Elastic - correct answer ✔Perfectly
Elastic: PED = Infinity
Perfectly Inelastic: PED = 0
Unit Elastic: PED = 1
Determinants of PED - correct answer ✔1. Number of close substitutes
2. Proportion of income spent on the good
3. Degree of necessity
4. Time
Application of PED - correct answer ✔1. Total Revenue (Inelastic or Elastic
part of curve)
Elastic = Increase in price - Decrease in revenue
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card for the summaries. There is no membership needed.
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 LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.72. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84669 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