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What does the law of demand fail to show?
A
A PED size of exactly 1 means the two percentage changes are equal.
B
Buyers can switch to a rival instead of losing the purchase.
C
Habit and addiction reduce a buyer's willingness to react, making demand more inelastic.
D
It shows the direction of the reaction, not its size.
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2.2.6 Price elasticity of demand Flashcards
20 flashcards on OCR GCSE Economics 2.2.6 Price elasticity of demand: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.