Calculating Price Elasticity of Demand and its Importance for Businesses.

The video tutorial explains how to calculate the price elasticity of demand (PED) using examples like newspapers and chocolate bars. It covers the formula for PED, how to calculate percentage changes in demand and price, and how to interpret inelastic demand. The tutorial also demonstrates rearranging the PED formula and using the elasticity triangle for problem-solving. Finally, it discusses the importance of elasticity in business pricing strategies, particularly in industries like sports.

What was the percentage change in demand for Freddo chocolate bars after a 5% price increase?

Explain the significance of the elasticity triangle in calculating PED.

In what scenarios might demand be considered elastic versus inelastic?