jump to content of this page Bized logo linked to homepage
You are here: Home > Virtual Worlds > Virtual Learning Arcade > Price Elasticity of Demand

Virtual Worlds
Bookmark and Share

Advanced

Resources

Use the drop down boxes below to find resources related to this page.

Definitions:


The PED: Interpreting the PED

The aim of these question is to interpret the price elasticity of demand.

If the PED value is -0.5, a 10% increase in price will cause a; (select one answer)

(a) * 0.5% decrease in quantity
(b) * 5.0% decrease in quantity
(c) * 0.5% increase in quantity
(d) * 5.0% increase in quantity

What are the consequences for a firm with a PED of -1.6, if they decreased price by 5%, with an original quantity of 75 and original price of 110?; Try This

(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 demand home page »»