Describe what is meant by price inelastic demand. (worth 2 marks)
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Knowledge Checkpoint
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Describe what is meant by price inelastic demand. (worth 2 marks)
the percentage change in quantity demanded is less than the percentage change in price/any % change in price will cause a
smaller % change in the demand for it (1)
% change of quantity demanded/% change in price (1)
the PED formula will be less than one (1)
total revenue will fall if price goes down for a price inelastic good/total revenue will increase if the price increases of a price inelastic good (1)