Economics A Level: Toy Cars Price has Increased from 50 to 70p leading to a Demand Reduction from 15 to 10 Cars. What is the PED?

Question

Toy Cars Price has Increased from 50 to 70p leading to a Demand Reduction from 15 to 10 Cars. What is the PED?

go kys · Accepted Answer

-First, find the % Change in Qd: [15:100& —> 10:67%]
-Therefore %Change in Qd is -33% [Negative as its Dropped]
-Now % Change in P [50:100% —> 20:40%]
-Therefore %Change in P is 40%
-Therefore the PED is -33%/40% = -0.83

Economics A Level

Toy Cars Price has Increased from 50 to 70p leading to a Demand Reduction from 15 to 10 Cars. What is the PED?

-First, find the % Change in Qd: [15:100& —> 10:67%] -Therefore %Change in Qd is -33% [Negative as its Dropped] -Now % Change in P [50:100% —> 20:40%] -Therefore %Change in P is 40% -Therefore the PED is -33%/40% = -0.83

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