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PED from demand schedule

DmanDmythDledge · 2009-11-20 11:39:09

If you are asked to find the PED at initial equilibrium price and quantity what values should you use to calculate the PED other than the equilibrium point?

20-11-2009 11:39am

#1

DmanDmythDledge

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If you are asked to find the PED at initial equilibrium price and quantity what values should you use to calculate the PED other than the equilibrium point?

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#2 20-11-2009 11:45am

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PED what now?

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#3 20-11-2009 11:47am

DmanDmythDledge

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Deleted User wrote: »

PED what now?

Price Elasticity Demand.

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#4 20-11-2009 11:53am

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Price elasticity has come up a few times before, without answering your question here is a good post by the resident guru, Economiste Monetaire which gives accesible theory behind price elasticity.

http://boards.ie/vbulletin/showthread.php?t=2055426817&highlight=price+elasticity

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#5 20-11-2009 11:56am

DmanDmythDledge

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Thanks for that but it doesn't really answer my question at all. I have no problem understanding the concept, just don't know what values to use from the demand schedule as they all give different values from the PED when I put them into either the quick formula or the full one.

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#6 20-11-2009 4:11pm

Time Magazine

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Hiya,
To get an answer, your best bet is to provide the actual question and (if applicable) the choices of answers.

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#7 20-11-2009 7:37pm

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Correct me if I'm wong here, but you seem to have the quantity suplied and demanded for a given range of prices..

I don't think you need much more then that to answer the question.

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#8 22-11-2009 11:29am

thee glitz

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You need the equilibrium price and quantity (from solving the supply and demand equations)
and dQ/dP from the demand function. PED = P/Q * dQ/dP.

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