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Cambridge IGCSE Economics practice

What does a PED value of 0.5 indicate?

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Show answerPrice elasticity of demand (PED) revisionRevise the key idea

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MCQ

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Price elasticity of demand (PED)

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What does a PED value of 0.5 indicate?.

  1. A.Elastic demand
  2. B.Inelastic demand
  3. C.Unitary demand
  4. D.Perfectly elastic demand

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Paper 2 structured question: Price elasticity of demand (PED)

Paper 2Structured Questions1 marks

Description

Price Elasticity of Demand

Price elasticity of demand (PED) measures how much the quantity demanded of a good changes when its price changes. It is calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price).

  1. a

    State the formula for calculating price elasticity of demand.

    Aim for approximately 1 distinct marking point.

    [1]