A formula for measuring Price Elasticity of Demand (PED) is as follows:
$$\text{PED} = \frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols stands for:
| Symbol | Definition |
| ------ | --------- |
| \(\Delta Q\) | Change in the quantity demanded of the good - Leaving Cert Economics - Question 9 - 2014
Question 9
A formula for measuring Price Elasticity of Demand (PED) is as follows:
$$\text{PED} = \frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the ... show full transcript
Worked Solution & Example Answer:A formula for measuring Price Elasticity of Demand (PED) is as follows:
$$\text{PED} = \frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols stands for:
| Symbol | Definition |
| ------ | --------- |
| \(\Delta Q\) | Change in the quantity demanded of the good - Leaving Cert Economics - Question 9 - 2014
Step 1
\(\Delta Q\)
96%
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Answer
Change in the quantity demanded of the good.
Step 2
\(\Delta P\)
99%
104 rated
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Answer
Change in the price of the good.
Step 3
\(P_1\)
96%
101 rated
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Answer
Original price of the good.
Step 4
\(P_2\)
98%
120 rated
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Answer
New / current price of the good.
Step 5
\(Q_1\)
97%
117 rated
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Answer
Original quantity demanded of the good.
Step 6
\(Q_2\)
97%
121 rated
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Answer
New / current quantity demanded of the good.
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