PED stands for which concept?

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Study for the IGCSE Economics CIE Section 2 on resource allocation. Practice with flashcards and multiple-choice questions, each with hints and explanations. Prepare for success!

Multiple Choice

PED stands for which concept?

Explanation:
Price Elasticity of Demand measures how responsive the quantity demanded of a good is to a change in its price, usually calculated as the percentage change in quantity demanded divided by the percentage change in price. This acronym specifically denotes that concept and focuses on demand. The other terms refer to different ideas: price elasticity of supply looks at how quantity supplied responds to price changes, income elasticity of demand relates to changes in income, and cross elasticity of demand examines how demand for one good responds to the price of another good. So PED is the shorthand for Price Elasticity of Demand.

Price Elasticity of Demand measures how responsive the quantity demanded of a good is to a change in its price, usually calculated as the percentage change in quantity demanded divided by the percentage change in price. This acronym specifically denotes that concept and focuses on demand. The other terms refer to different ideas: price elasticity of supply looks at how quantity supplied responds to price changes, income elasticity of demand relates to changes in income, and cross elasticity of demand examines how demand for one good responds to the price of another good. So PED is the shorthand for Price Elasticity of Demand.

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