Price elastic demand
What Price elastic demand means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Price elastic demand
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Reference: Pearson Edexcel
Where PED is less than -1, so a price decrease causes a proportionately larger increase in quantity demanded and raises total revenue.
A value less than -1, where quantity demanded is highly responsive to price changes.
Topics that use Price elastic demand
- Price elasticity of demand (PED) (Pearson Edexcel A-Level)
Related terms
- Necessity versus luxury
- Percentage changes
- Price elasticity of demand
- Price inelastic demand
- Pricing strategies
- Substitutability
- Time periods in economics
- Total revenue
Using Price elastic demand in the exam
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