Business A-Level
Price Elasticity of Demand (PED)
What Price Elasticity of Demand (PED) means in Business A-Level, as defined for Pearson Edexcel.
Definitions of Price Elasticity of Demand (PED)
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
A numerical measure of the responsiveness of the quantity demanded for a product following a change in its price.
A measure of how much the quantity demanded of a product changes when its price changes.
Topics that use Price Elasticity of Demand (PED)
- Market (Pearson Edexcel A-Level)
- Theme 1: Marketing and people (Pearson Edexcel A-Level)
Related terms
- Barriers to Entry
- Market Segmentation
- Market Share
- Oligopoly
- Product Differentiation
- Piece-rate Pay
- Product Life Cycle
- Span of Control
Using Price Elasticity of Demand (PED) in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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