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PED questions and answers certified 2024
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PED questions and answers certified 2024
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PED, PES, YEDPrice Elasticity of Demand (PED) - correct answer ✔A measure of the
responsiveness of the quantity demanded of a good/service to a change in its
price.
demand curve - correct answer ✔a graph of the relationship between the
price of a good and the quantity demanded
Equation for PED - correct answer ✔PED=(%ΔQd)/(%ΔP)
PED<1 - correct answer ✔Demand is inelastic
PED>1 - correct answer ✔Demand is elastic
PED=1 - correct answer ✔Demand is unit elastic
Range of values for PED - correct answer ✔0≤PED≤∞
Determinants of PED (4) - correct answer ✔1. The availability of substitutes
2. Whether the good is a luxury or a necessity
3. % of income spent on good
4. Time
How to calculate a percentage change - correct answer ✔[(new-old)/old]*100
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