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PROVINCE OF EASTERN CAPEEDUCATIONDIRECTORATECURRICULUM FET Programs LESSON PLANS ECONOMICSGRADE 11 TERM 1FOREWORD The following Grade 10, 11 and 12 Lesson Plans were developed by Subject Advisors
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How to fill out price elasticity of demand

01
To fill out price elasticity of demand, follow these steps:
02
Determine the initial price and quantity demanded.
03
Determine the final price and quantity demanded.
04
Calculate the percentage change in price: (final price - initial price) / initial price * 100%.
05
Calculate the percentage change in quantity demanded: (final quantity demanded - initial quantity demanded) / initial quantity demanded * 100%.
06
Calculate the price elasticity of demand: percentage change in quantity demanded / percentage change in price.
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Analyze the calculated price elasticity value. If it is greater than 1, demand is elastic. If it is less than 1, demand is inelastic. If it is equal to 1, demand is unit elastic.
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Use the price elasticity of demand to determine the impact of price changes on consumer behavior and total revenue.

Who needs price elasticity of demand?

01
Price elasticity of demand is needed by various stakeholders including:
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- Businesses: to make decisions regarding pricing strategies, product positioning, and promotions. It helps businesses understand how changes in price will affect consumer demand and overall profitability.
03
- Economists: to study consumer behavior and market dynamics. Price elasticity of demand is a fundamental concept in economics and helps economists analyze market trends and make predictions.
04
- Government agencies: to formulate policies related to taxation, subsidies, and price regulations. Price elasticity of demand helps governments understand the impact of these policies on consumer behavior and market equilibrium.
05
- Market researchers: to assess the competitiveness of products and forecast market demand. Price elasticity of demand provides valuable insights into consumer responsiveness to price changes.
06
- Investors: to evaluate the potential profitability of a product or market. Price elasticity of demand helps investors assess the demand sensitivity to changes in price and make informed investment decisions.

What is Price elasticity of demand and supply Form?

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Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price.
Generally, businesses that sell goods and services for which the price elasticity of demand is relevant may be required to report it.
To fill out price elasticity of demand, one must calculate the percentage change in quantity demanded divided by the percentage change in price.
The purpose of price elasticity of demand is to understand how changes in price can affect consumer demand and to inform pricing strategies.
Typically, the report should include the calculated price elasticity coefficient and any relevant data on price changes and quantity demanded.
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