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- Price_elasticity_of_demand abstract "Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (ceteris paribus, i.e. holding constant all the other determinants of demand, such as income).Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. Only goods which do not conform to the law of demand, such as Veblen and Giffen goods, have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is, changes in price have a relatively large effect on the quantity of a good demanded.Revenue is maximized when price is set so that the PED is exactly one. The PED of a good can also be used to predict the incidence (or "burden") of a tax on that good. Various research methods are used to determine price elasticity, including test markets, analysis of historical sales data and conjoint analysis.".
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- Price_elasticity_of_demand wikiPageWikiLinkText "Price elasticity of demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "Price elasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "Price_elasticity_of_demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "compensation reaction".
- Price_elasticity_of_demand wikiPageWikiLinkText "consumers to consume less".
- Price_elasticity_of_demand wikiPageWikiLinkText "demand elasticities".
- Price_elasticity_of_demand wikiPageWikiLinkText "demand elasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "demand inelasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "elastic against price".
- Price_elasticity_of_demand wikiPageWikiLinkText "elastic".
- Price_elasticity_of_demand wikiPageWikiLinkText "elasticity of demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "elasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "inelastic demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "inelastic".
- Price_elasticity_of_demand wikiPageWikiLinkText "mathematical definition".
- Price_elasticity_of_demand wikiPageWikiLinkText "perfectly elastic".
- Price_elasticity_of_demand wikiPageWikiLinkText "price elastic".
- Price_elasticity_of_demand wikiPageWikiLinkText "price elasticity of demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "price elasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "price inelasticity of demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "price inelasticity".
- Price_elasticity_of_demand wikiPageWikiLinkText "price".
- Price_elasticity_of_demand wikiPageWikiLinkText "price-inelastic goods".
- Price_elasticity_of_demand wikiPageWikiLinkText "price-inelasticity of their demand".
- Price_elasticity_of_demand wikiPageWikiLinkText "sensitive to price".
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