《ACCA F1教学资料》F1-ch4

nd fashion e. Expectation of future price changes f. The distribution of e 4. The demand Schedule ? Substitutes plements Substitutes goods are goods that are alternatives to each other. Complements are goods that tend to be bought and used together. 4. The demand Schedule ? The price elasticity of demand Price elasticity explains the relationship between change in quantity demanded and changes in price. Price elasticity of demand (PED) = Percentage change in demand/ percentage change in price. ? PED>1, elastic ; PED<1, inelastic 4. The demand Schedule ? e elasticity of demand e elasticity of demand (IED) =Percentage change in demand/ percentage change in e. IED<0---- Inferior goods 0<IED<1, inelastic----Necessities IED>1, elastic----Luxury goods