Price Elasticity of Demand (PED) illustrates how well quantities of goods and services demanded by consumers respond to changes in prices. The following are determinants of PED except:

Question

Quizplus · Accepted Answer

Decreased choice is not a determinant of PED.
Key Takeaway: When goods and services are demanded in large quantities, prices fluctuate in response. For example, a certain product's abundance in the market can lead to decreased pricing. How well quantities of goods and services demanded by consumers respond to changes in prices is referred to as Price Elasticity of Demand (PED). Determinants of PED are percentages of income spent on goods and services, availability of substitute goods, and the time period elapsed.

Price Elasticity of Demand (PED) Illustrates How Well Quantities of Goods