Positive Price Elasticity of Demand
(Redirected from Positive Price Elasticity)
- See: Price Elasticity Curve, Law of Demand.
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Price_elasticity_of_demand Retrieved:2014-11-29.
- … 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.
- (Feldstein, 1970) = Martin S. Feldstein. (1970). “The rising price of physician's services.” In: The Review of Economics and Statistics.