2013 May (PED) Paper 3 HL
(c) (i) Calculate the PED for the product when the price falls from $25 to $20.
Midpoint Formula
(ii) Using the table on page 16 to illustrate your answer, explain why the PED would change along the demand curve.
As Price increases along a straight-line demand curve the percentage change in Qd increases while the percentage change in prices decreases. Therefore demand becomes more elastic.
No comments:
Post a Comment