8 min read
This guide covers Price Elasticity of Demand (PED), including its meaning as responsiveness to price changes. It explains how to calculate PED using the formula and percentage changes in quantity demanded and price. The guide details the five types of elasticity, from perfectly inelastic to perfectly elastic, and illustrates them with examples. It also explains the total revenue test to determine elasticity and provides practice questions, including multiple-choice and free-response questions, along with a scoring rubric.
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Question 1 of 10
Price elasticity of demand measures the responsiveness of 🧐:
Quantity supplied to a change in price
Quantity demanded to a change in price
Price to a change in quantity demanded
Consumer income to price changes