This article focuses more on the price elasticity of demand. I have found out that the equilibrium price is 5 and equilibrium demand … Thus, by solving the two equations we have the equilibrium price = $400 per unit of ice cream and the equilibrium quantity= 10,000 units of ice cream.

If price increases by 10% and demand for CDs fell by 20%; Then PED = -20/10 = -2.0 If the price of petrol increased from 130p to 140p and demand fell from 10,000 units to 9,900 Definition: Price elasticity of demand (PED) measures the responsiveness of demand after a change in price. When demand or supply for something changes considerably after a price change, the product or service is very price elastic..

Example of PED.

Price elasticity of demand (E p d), or elasticity, is the degree to which the effective desire for something changes as its price changes.In general, people desire things less as those things become more expensive. In equilibrium, we know that the quantity demanded= quantity supplied. The function of demand is:\begin{align*} D(p) = 66-3p-p^2 \\\end{align*} The function of supply is: \begin{align*}S(p) = 4p^2+8p-114\\ \end{align*} The task is to find price elasticity of demand in the point of economic equilibrium. If, however, there is no change in demand or supply, or very little change, it is price inelastic.. Price elastic vs inelastic.