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What PED means

What PED means

Two demand curve graphs comparing elastic and inelastic demand, with the same price rise causing a larger quantity fall on the elastic curve and a smaller quantity fall on the inelastic curve

Price elasticity of demand, or PED, measures how strongly quantity demanded responds when price changes. Customers usually buy more when price falls and less when price rises, so PED focuses on the strength of that movement rather than a whole demand shift caused by income, weather, or advertising.

Price elasticity of demand Lesson

  1. A Level
  2. /Business
  3. /Price elasticity of demand

Step-by-step lessons on Edexcel A Level Business Price elasticity of demand. Each one builds up to exam-style questions. Build up your knowledge of the core business functions first, then focus revision time on the strategy and evaluation-heavy topics, since these carry the most marks.

Lessons