What PED tells a decision-maker
What PED tells a decision-maker
Price elasticity of demand, or PED, measures how responsive quantity demanded is to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Step-by-step lessons on OCR GCSE Economics 2.2.8 Importance of price elasticity of demand. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.