Examination questions - Elasticity

1. with the help of examples, explain the determinants of price elasticity demand.

       PED- Price Elasticity of Demand : Measure how much does the quantity demand changes when the price changes.
    （ from wikipedia) 


  the value of the PED as : Inelastic demand is greater than 0, less than 1.
                                       elastic demand is greater than infinity.


For example, An inelastic product ( OIL) : A change in the price leads to a proportionally smaller change in quantity. Oil is a common and necessary product for living. so even the price changes higher