2015 (PED) Paper 3 HL
(f) Calculate the PED if
(i) price increases to $12
Formula for PED
% change in Qd = (New – Old)/Old = (Qd2 – Qd1)/ Qd1 = (9 – 22)/22 = 59.09%
% change in Price = (New – Old)/Old = (P2 – P1)/ P1 = (12 – 10)/10 = 20%
PED = 2.95
Midpoint Formula
Midpoint Formula PED = 4.61
(ii) Price decreases to $4
Midpoint Formula
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