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Management Accounting

Price Elasticity of Demand

Price elasticity of demand : The responsiveness of quantity demanded to a change in price. PeD =...

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Management Accounting Articles

  • Price Elasticity of Demand

    Management Accounting Tutor (North London) Picture Price elasticity of demand : The responsiveness of quantity demanded to a change in price. PeD = % change in Q / % change in P.   More than 1 = elastic 1 = unity less than 1 = inelastic Determinants of price elasticity of demand: Substitutes: When the price of a good rises, people will...