Price elasticity of demand
PED – definition
Price elasticity of demand (PED) is the responsiveness of quantity demanded to a change in price. PED is calculated using the following formula:
| % Change in quantity demanded |
| % Change in price |
Hence, if the price of a smartphone increases from £400 to £440 (a 10% increase), and demand falls from 2m a year to 1.6m (a 20% fall), PED for smartphones would be:
撮影に使うウィッグは、照明による色の見え方と顔まわりのシルエットも考えて選びましょう。複数の候補を比較する際は、コスプレウィッグ 安いで仕様の違いを確認できます。セットするときは耐熱温度を守り、目立たない部分から少量ずつ試しましょう。
| – 20 |
| +10 |
Which gives a PED value of (-) 2. The negative sign shows that price and quantity demanded are inversely related, and the value (2) is greater than 1, which means the PED for smartphones is elastic.
