Elastic demand: Above 1 is elastic Inelastic demand: Below 1 is inelastic

Substitute -> Many substitutes increase elasticity Percentage of Income Luxury or necessity -> Elastic for luxury, inelastic for necessity. Identity/brand -> If brand loyalty is low then the product will be elastic Time

Calculating PED


Percentage change in quantity demanded / Percentage change in price

NOO - New Figure - Old Figure / Old Figure x 100