Edexcel Business A-level theme 1.2

PED is always a negative value

an increase of sales of complementary goods will reduce demand

PED - a measure of how responsive demand is to price - uses which equation

the amount of a product that suppliers make available at any given price in a period of time

where the demand and supply curve meet is known as the

a PED of more than 1 is inelastic

price and demand have an inverse relationship

if the change in price result in a less than proportionate change in demand, the good is

which of these doesn't impact on demand?

which of these does NOT affect supply

a positive YED implies the good is normal or luxury

price and supply have an inverse relationship

an increase in sales of substitute goods will reduce demand

if the price exceeds the equiliburim price, there will be excess demand

YED - a measure of how responsive demand is to changes in income, uses which equation

a negative YED implies a good is inferior - and purchased less despite increases in income

the amount of a product that consumers are willing and able to purchase at a given price

which factor will not impact on YED

a subsidy is a grant given to producers to encourage production