Price elasticity of demand

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AQA, Aquinas, Economics, ECON1, Markets, Market Failure

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Price elasticity of demand

  1. 1. ECON1 WWW.AQUINASECONOMICSAS.CO.UK @AQUINASECONOMIC Price Elasticity of Demand Answer all the questions below 1. Explain the term Price Elasticity 2. What is the calculation for Price Elasticity of Demand 3. Complete the table Answer: Known as: 0 Between 0 and -1 1 Above 1 Infinite 4. Draw a graph to illustrate the following scenarios: a. Relatively Inelastic PeD b. Relatively elastic PeD c. Perfectly elastic PeD d. Perfectly inelastic PeD 5. For each of the graphs give an example of goods which could be considered to have each of the elasticities 6. Explain the factors which determine Price Elasticity of Demand 7. Explain with reference the elasticity, how and why some firms can pass the incidence of tax onto consumers

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