price elasticity
What price elasticity means in Business A-Level, as defined for AQA.
Definitions of price elasticity
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Reference: AQA
A ratio dividing the percentage change in quantity demanded by the percentage change in price, normally negative, where below one is inelastic and above one is elastic.
A measure comparing the percentage change in quantity demanded with the percentage change in price, carrying no units because it is a ratio of two percentages.
Topics that use price elasticity
- Annex: quantitative skills in business (AQA A-Level)
- Understanding markets and customers (AQA A-Level)
Related terms
- analysis
- average rate of return
- averages
- axes and scales
- base year
- benchmarking
- branding and price sensitivity
- break-even charts
Using price elasticity in the exam
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