Elasticity (OCR A-Level Economics): Quizzes

Responsiveness of demand/supply to changes

$\frac{\% \Delta Q_d}{\% \Delta P}$

When $\text{PED} > 1$

Perfectly inelastic demand

$\frac{\% \Delta Q_d}{\% \Delta \text{income}}$

$\text{YED} > 1$

The good is inferior

$\frac{\% \Delta Q_d \text{ of A}}{\% \Delta P \text{ of B}}$

Substitutes

The goods are complements

$\frac{\% \Delta Q_s}{\% \Delta P}$

Supply curve slopes upward

$\text{Price} \times \text{Quantity}$

Increases

Increases