- This topic has 3 replies, 2 voices, and was last updated 2 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Sir, I have a question that :
if PED > 1 then it is demand elastic
if PED < 1 then it is demand inelastic
BUT the notes say that HIGH PED is elastic and LOW PED is inelastic so how do we know that it is high PED or low PED (as compared to what?)
Compared to nothing. There is no sort of ‘cut-off’ !!
Sorry but I don’t understand what u said. Compared to nothing then how do we know whether the demand is elastic or inelastic based on PED.
I have a book that says::
if PED > 1 then it is demand elastic
if PED < 1 then it is demand inelastic
How do we know finally whether the PED is high and elastic or it is low and inelastic???
But you have answered your own question.
If it is more than 1 then it is elastic, and the more it is above 1 then the more elastic it is.