1. PED = %Change in QD / %Change in Price

2. The price elasticity of demand is the responsiveness (how they change their demand) of consumers to a change in the price of a good.

3. The good is inelastic

4. Perfectly Elastic = -Infinite; Perfectly Inelastic = 0; Unit Elastic = 1; A value between 0 and -1 is inelastic; A value between -1 and -Infinite is elastic.

5. If there is derived demand for a good then it means that the good is demanded for what it produces. For example labour isn’t demanded for labour but for what it produces. [...]