Notes>Microeconomics>1.2 Elasticities

Definitions   Price elasticity of demand (PED) is a measure of the responsiveness of the quantity demanded for a good or service to change in its price. Inelastic demand is where a change in price of a good or service leads to a proportionately smaller change in the...

Price elasticity of demand Price elasticity of demand (PED): the measure of the responsiveness of the quantity demanded of a good to a change in its price, along a demand curve Mathematically the value is negative, as the demand curve slopes downwards, but we treat it...