Price Elasticity Of Demand (PED)
Gbogbo ọrọ náà
If a shop raises its price by 10 per cent, does it sell a little less or a lot less? The answer decides whether the price rise makes the firm more money or less. Price elasticity of demand turns that question into a number you can calculate and act on.
In this lesson you will calculate PED from the formula, read its value (from perfectly inelastic to perfectly elastic), draw the matching demand curves, and link elasticity to the revenue a firm earns. By the end you will be able to advise a firm whether raising or cutting price will boost its takings.
Ebumnobi
- calculation of PED using the formula
- interpretation of the significance of the PED value: perfectly inelastic, inelastic, unitary, elastic, perfectly elastic
- drawing and interpretation of demand curve diagrams to show different PED
- main influences on whether demand is elastic or inelastic
- effect of price changes on the amount spent by consumers and revenue raised by firms, shown both in a diagram and as a calculation
- relationship between PED and the amount spent by consumers and revenue raised by firms
- implications of PED for decision-making by consumers, workers, producers/firms and government
Nkuzi Olu
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Maapụ uche
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Akwụkwọ Ọmụmụ
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Nnyocha Ọmụmụ
Ekele diri gi maka imecha ihe karịrị na Price Elasticity Of Demand (PED). Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.
Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.
Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.
- Price elasticity of demand is calculated as: A. % change in price / % change in quantity demanded B. % change in quantity demanded / % change in price C. change in price x change in quantity D. quantity demanded / price Answer: B
- A PED value of 0.3 (ignoring the sign) means demand is: A. elastic B. unitary C. inelastic D. perfectly elastic Answer: C
- A firm with elastic demand wishing to raise its revenue should: A. raise the price B. lower the price C. keep price unchanged D. stop producing Answer: B
- Price rises 10% and quantity demanded falls 5%. The PED is: A. -2 B. -0.5 C. -5 D. -0.05 Answer: B
- A perfectly inelastic demand curve is drawn as: A. horizontal B. flat and downward sloping C. vertical D. upward sloping Answer: C
Rue ajuju ndi a n'ime ngwa ahu
Rue ajuju ndi a n'ime ngwa ahu
Akwụkwọ A Na-atụ Aro
Mụtakwuo ihe site na isi mmalite mepere emepe
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Akụkụ akwụkwọ
Price Elasticity of Demand and Price Elasticity of Supply
Calculate the price elasticity of demand
"Principles of Economics 2e: Price Elasticity of Demand and Price Elasticity of Supply" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/principles-economics-2e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply. Access for free at https://openstax.org/books/principles-economics-2e/pages/1-introduction
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Akụkụ akwụkwọ
Elasticity and Pricing
Analyze how price elasticities impact revenue
"Principles of Economics 2e: Elasticity and Pricing" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/principles-economics-2e/pages/5-3-elasticity-and-pricing. Access for free at https://openstax.org/books/principles-economics-2e/pages/1-introduction
Ndị otu ndị ọzọ bipụtara ha n'okpuru ikike mepere emepe, anyị na-ekele ha dị ka ha si chọọ. Njikọ na-emepe saịtị ha.
Meecha Ajụjụ Ule Ọmarịcha
Ị chọrọ ime ajụjụ ule ọmarịcha gbasara Price Elasticity Of Demand (PED)? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.
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