Supply and Demand
Elastic Demand- measurement of how how consumer's react to change of price
3 Types of Demand
- Elastic- the demand the is very sensitive in a change to price. Its always greater, the product is not a need and there are substitute
- Inelastic- A demand that is not sensitive to a change in price it is a necessity and there are few substitute
- Unitary- always equal to one
these are examples of the differences between elastic and inelastic Demand
Price Elasticity of Demand (PED)
PED- is a measure used in economics to show the responsiveness, or elasticity of the quantity demanded of a good or service to a change in its price
above is the equation to find the PED
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