Why does PED change along the demand curve (in economics)?

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2026-09-06 16:05

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Price Elasticity of Demand (PED) changes along the demand curve due to the inverse relationship between price and quantity demanded. As the price decreases, consumers may become more sensitive to price changes, resulting in higher elasticity. Conversely, at higher prices, consumers may be less responsive to price changes, leading to lower elasticity. This variation occurs because the proportion of income spent and the availability of substitutes can influence consumer behavior at different price levels.

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