Read this section about price elasticity when there is a change along the demand curve. Make sure to back to the main reading in Unit 2.6 as it explains the concept of elasticity. Also, make sure that you understand the concept of "price elasticity of demand", which is about how the percentage change in the price of a product affects the amount of quantity demanded but measured as a percentage change. A good's price elasticity of demand is largely determined by the availability of substitute goods. Explain how a good's price elasticity of demand may be different in the short term than in the long term
KEY TAKEAWAYSKey Points
Key Terms
The price elasticity of demand (PED) is a measure of how much the quantity demanded changes with a change in price. The PED for a given good is determined by one or a combination of the following factors:
Page 2
Learn new skills or earn credit towards a degree at your own pace with no deadlines, using free courses from Saylor Academy. We're committed to removing barriers to education and helping you build essential skills to advance your career goals. Start learning here, or check out our full course catalog. Log in or Sign up to enroll in courses, track your progress, gain access to final exams, and get a free certificate of completion!
Page 3
Learn new skills or earn credit towards a degree at your own pace with no deadlines, using free courses from Saylor Academy. We're committed to removing barriers to education and helping you build essential skills to advance your career goals. Start learning here, or check out our full course catalog. Log in or Sign up to enroll in courses, track your progress, gain access to final exams, and get a free certificate of completion! Page 4
Learn new skills or earn credit towards a degree at your own pace, with no deadlines, using free courses from Saylor Academy. We're committed to removing barriers to education and helping you build essential skills to advance your career goals. Choose a course below, or check out our full course catalog. Log in or Sign up to enroll in courses, track your progress, gain access to final exams, and get a free certificate of completion! |