Price elasticity of demand (PED): A measure of how responsive quantity demanded is to a change in price: PED = percentage change in quantity demanded divided by percentage change in price.
How to apply it: Calculate PED using the midpoint method and classify demand as elastic (PED > 1), inelastic (PED < 1), or unit elastic (PED = 1).
Course: AP Microeconomics · Unit: Supply and Demand
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