Currently unavailable: for regular students
Degree: Human, Social and Political Science (Bachelors) - Cambridge University
|Economics||A Level||£22 /hr|
|Government and Politics||A Level||£22 /hr|
|Politics||A Level||£22 /hr|
|Government and Politics||GCSE||£20 /hr|
|-Oxbridge Preparation-||Mentoring||£22 /hr|
|-Personal Statements-||Mentoring||£22 /hr|
Price Elasticity of Demand (PED) calculates the responsiveness/sensitivity of the quantity demanded of a good or service to a change in price.
The calculation for PED is therefore: the percentage change in quantity demanded divided by the percentage change in price.
If the resulting number is between 0 and 1, demand is inelastic, in other words it doesn't respond proportionally to a change in price. Inelastic goods often lack obvious substitute goods. Examples include petrol or salt.
If the resulting number is 1 or above then demand is elastic, in other words it responds more than proportionately to a change in price. Elastic goods often have clear substitutes or are non-essential. For example electronics such as TV's and phones could be described as having an elastic PED.