Price elasticity of demand
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What PED measures

What PED measures

Demand diagrams comparing a steep inelastic demand curve and a flatter elastic demand curve, showing the same price rise but a smaller quantity fall for inelastic demand and a larger quantity fall for elastic demand

A price change does not always cause the same-sized change in quantity demanded. Price elasticity of demand, or PED, measures how responsive consumers are when price changes. In the figure, the same price rise causes a much larger fall in quantity demanded for the elastic good.

Price elasticity of demand Lesson

  1. GCSE
  2. /Economics
  3. /Price elasticity of demand