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From course:

Economics A Level (DONEEEEEEE)

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Question:

What does the PED mean when it is Between -1 and 1 -1 < PED < 1 [Can’t be Equal]

Author: eric_galvao



Answer:

-This means the Demand is Inelastic. Any Change to Price leads to Smaller Change in Quantity Demanded. This gets more Extreme as the PED approaches 0 -On a Diagram, it would look Fairly Steep, Showing off the Fact that changing the Price does Little Effect to Quantity Demanded when compared to the Price Change in %


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