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

An interactive worksheet on the interpretation of the value of the price elasticity of demand as part of the price elasticity simulation in the Virtual Learning Arcade.

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)


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