Price elasticity of demand .
Law of Demand & Price Elasticity of Demand (PED)
The Law of Demand says that when the price increases, people usually buy less of that product.
But how much less they buy depends on how sensitive or responsive they are to price changes.
Price Elasticity of Demand (PED)
PED shows how much demand changes when the price changes.
Price Inelastic Demand → Demand changes a little when price changes.Example: Rice, petrol, toothpaste – people still need them even if prices rise.
Price Elastic Demand → Demand changes a lot when price changes. Example: Pepsi, chocolate, bananas – people switch to other brands easily.
3 Views