Elastic demand: Above 1 is elastic Inelastic demand: Below 1 is inelastic

Substitute Many substitutes increase elasticity Percentage of Income Luxury or necessity Elastic for luxury, inelastic for necessity. Identity/brand If brand loyalty is low then the product will be elastic Time

Calculating PED


Percentage change in quantity demanded / Percentage change in price

NOO - New Figure - Old Figure / Old Figure x 100