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Elasticity � Measures how much one variable changes as a response to a change in another var

Elasticity � Measures how much one variable changes as a response to a change in another var

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Elasticity – Measures how much one variable changes as a response to a change in another variable. PED = % change of quantity of demand/ % change of Price Methods: 1) Growth Method New-old/old = % change x 100%
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Unformatted text preview: Then, Demand/price 2) Midpoint Method Determinants of PED P= Proportion of income spent A= Availability of Substitutes N= Necessity/Luxury T= Time...
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