Home » Virtual Worlds » Virtual Learning Arcade » Calculation of PED Worksheet - Price Elasticity Simulation [Virtual Learning Arcade]

Calculation of PED Worksheet - Price Elasticity Simulation [Virtual Learning Arcade]

An interactive worksheet about calculating the price elasticity of demand in the price elasticity of demand simulation in the Virtual Learning Arcade.

The PED: Calculating the PED

The aim of these questions is to look at the calculation of the price elasticity of demand.

A PED value of -0.5 means (select one answer)

(a) * inelastic
(b) * elastic

What type of good is the following, and how would you interpret the value ?; Try This

  • Original Price (£) = 110
  • Original Quantity = 75
  • Final Price (£) = 125
  • Final Quantity = 55

(Type your answer to the previous question in the box below, then click on explain)


Help on

Your answer structure »»
Understanding the simulation »»
Theory of the PED »»

Navigation

Price elasticity of demand home page »»

Submitted by bized on Wed, 14/03/2001 - 13:00