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PED
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PED
Measures the extent to which a change in price leads to a change in quantity demanded
Factors influencing PED
- Number & closeness of substitutes
- Luxury or necessity
- Proportion of income spent on a good
- income spent on a good
Significance of PED for a firm
- In a highly competitive market
- many standardised products
- may try a USP
- many standardised products
- when there are few close substitutes
- niche markets
- In a highly competitive market
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- AS level Business Studies Mind Map on PED, created by lucy dennett on 18/05/2017.
- Created by
- lucy dennett
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