What does PED measure?
What does PED measure?
Price elasticity of demand (PED) measures how responsive the quantity demanded of a good is to a change in that good's own price. The law of demand tells us the direction of the reaction, but PED tells us the size of the reaction.
Step-by-step lessons on OCR GCSE Economics 2.2.6 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.