Price Elasticity of Demand (PED) measures the responsiveness of ____ following a change in ____. It is useful for businesses to know their PED value for making ____ decisions. PED can be calculated by dividing the percentage change in ____ by the percentage change in ____. An elastic good will be a result ____ -1 and inelastic will be ____ -1. If a product is elastic, it means that consumers are very price ____. In other words, if price changes a little, their demand will change a lot. An inelastic good, means that consumers are not so price sensitive. This may be because of factors such as strong ____, whether the product is a ____ or how habitual or ____ the product may be. A business' total ____ will ____ if they raise the price for an elastic good - this is because the fall in Qd will be ____ to the increase in P - the ideal strategy for an elastic good is to ____ the price. For an inelastic good, they ought to raise the price as the fall in Qd will be ____ to the increase in price.

PED

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