PED and PES Quiz

Formula for PED?

• PED = (% Change in Quantity Demanded) / (% Change in Price)
• PED = (% Change in Price) x (% Change in Quantity Demanded)

• PED = (Change in Price) / (Change in Quantity Demanded)

• PED = (Change in Quantity Demanded) / (Change in Price Change)

Formula for PES?

• PES = (Change in Price) / (Change in Quantity Supplied)

• PES = (% Change in Price) / (% Change in Quantity Supplied)

• PES = (% Change in Quantity Supplied) / (% Change in Price)
• PES = (Change in Quantity Supplied) / (Change in Price)

If the value of PED is less than 1, demand is said to be

If the value of PED is greater than 1, demand is said to be

If PED is exactly -1, demand is said to have

If PED is equal to infinity, demand is said to be

If the value of PED is zero, demand is said to be

What PED does the demand curve show?

• Unitary elastic

• Perfectly elastic

• Perfectly inelastic

What PED does the demand curve show?

• Unitary elastic

• Perfectly elastic

• Perfectly inelastic

Which is not a factor affecting PED?

• Price of substitutes

• Degree of necessity

• Proportion of income spent

• Availability of substitutes