Explore & Learn

Karthikeyan A · 2024-11-15T09:26:56.139Z

#economics #priceelasticityofdemand #demand • Price Elasticity of Demand (PED) measures how much the quantity demanded of a product changes when its price changes. • Elastic Demand: When price changes a lot, people buy a lot less or more (e.g., luxury items, lots of substitutes). • Inelastic Demand: When price changes, people buy only a little less or more (e.g., necessities, no substitutes). Formula: Example: • If the price of concert tickets rises by 10%, and sales drop by 15%, demand is elastic (people care about the price). In short: • Elastic = Big demand change. • Inelastic = Small demand change.

Search, Explore, Share & Discuss your passionate topics.

A dog family which has torn apart. In one day

Karthikeyan A

Nov 281 min read

A mother can take care of ten children but ten children can't take care of one mother.

Eshaaan

Nov 281 min read

An animal with four legs

Karthikeyan A

Nov 262 min read

Why you should be kind to people

Eshaaan

Nov 181 min read

1

2 3 4 5

Advance Group

Primary Group

Primary Learning Plan

Topics to Learn

Kids Activities

Kids Addition

Common

Online Resources

Drive

Update Summary

Team Members

Academic

Attendance

INWFHOUTLEAVE

Submitted

To test this feature, visit your live site.

Karthikeyan A

Nov 15

Edited: Nov 15

Price elasticity of demand (basic)

in Karthikeyan

#economics #priceelasticityofdemand #demand

Price Elasticity of Demand (PED) measures how much the quantity demanded of a product changes when its price changes.
Elastic Demand: When price changes a lot, people buy a lot less or more (e.g., luxury items, lots of substitutes).
Inelastic Demand: When price changes, people buy only a little less or more (e.g., necessities, no substitutes).

Formula:

Example:

If the price of concert tickets rises by 10%, and sales drop by 15%, demand is elastic (people care about the price).

In short:

Elastic = Big demand change.
Inelastic = Small demand change.

2 comments

Comments (2)

Anitha

Nov 15

1. What does Price Elasticity of Demand (PED) measure?

2. What type of products typically have elastic demand? Provide one example.

3. What type of products typically have inelastic demand? Provide one example.

4. How is elastic demand different from inelastic demand in terms of consumer behavior?

5. What happens to demand if the price of a product with elastic demand increases significantly?

Karthikeyan A

Nov 18

Replying to

The price elasticity of demand (PED) is a measure that captures the responsiveness of a good's quantity demanded to a change in its price. More specifically, it is the percentage change in quantity demanded in response to a one percent change in price when all other determinants of demand are held constant.
Luxury goods are often considered examples of elastic demand because they are not essential items people need to survive. Examples of luxury goods include high-end clothing, jewellery, and designer handbags.
Common inelastic goods include petrol, salt, water, products/services sold by monopolies, cigarettes, and diamonds.
Inelastic demand alludes to an adjustment of the cost of a product that has no or slight change in the amount requested or the quantity demanded. At the point when a little change in the cost of an item brings about a significant change in the amount requested or the quantity demanded, it is known as elastic demand.
Understanding Price Elasticity of Demand
That is, a reduction in price does not increase demand much, and an increase in price does not hurt demand, either. This usually happens when there is no good substitute for a product, so consumers must continue purchasing it even if the price changes.