Price elasticity of demand

PED is how sensitive the market is to changes in price of a product.
Businesses calculate this to predict what will happen to sales if they change the price.

PED= %change in quantity demanded
           -------------------------------------
           % change in price

%change= change
                  ---------- x 100
                  original

If your answer is between 0 and 1 the product is price inelastic- customers are NOT affected by price e.g. petrol

If your answer is greater than 1 the product is price elastic- customers ARE affected by price e.g. bread

Ignore any minus signs in the final answer.