Positive Price Elasticity of Demand

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An Positive Price Elasticity of Demand is a price elasticity of demand that is a positive elasticity value.



References

2014

  • (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.

1970