What happens to the value of price elasticity of demand (PED) when the point X to point Y and what describes the value at point Y?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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12 The diagram shows a demand curve for pineapples.
ABCD
price
($)
effect on
value of PED
fall
2
fall
rise
unchanged
1.5-
1
0.5-
0-
0
quantity (000s)
What happens to the value of price elasticity of demand (PED) when there is a movement from
point X to point Y and what describes the value at point Y?
value of
PED at Y
3
elastic
inelastic
elastic
unitary
6
9
12
Transcribed Image Text:12 The diagram shows a demand curve for pineapples. ABCD price ($) effect on value of PED fall 2 fall rise unchanged 1.5- 1 0.5- 0- 0 quantity (000s) What happens to the value of price elasticity of demand (PED) when there is a movement from point X to point Y and what describes the value at point Y? value of PED at Y 3 elastic inelastic elastic unitary 6 9 12
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