Price inelastic demand
What Price inelastic demand means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Price inelastic demand
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Reference: Pearson Edexcel
Where PED is between 0 and -1, so a price increase leads to a proportionately smaller fall in quantity demanded and total revenue rises.
A PED value between 0 and -1, where the percentage change in quantity demanded is less than the percentage change in price.
Topics that use Price inelastic demand
- Price elasticity of demand (PED) (Pearson Edexcel A-Level)
Related terms
- Necessity versus luxury
- Percentage changes
- Price elastic demand
- Price elasticity of demand
- Pricing strategies
- Substitutability
- Time periods in economics
- Total revenue
Using Price inelastic demand in the exam
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