logo

Learning objective

Examine the connection between price elasticity of demand and total revenue/spending on a product, represented through both diagrams and calculations.

Read the explanation, check the common trap, then practise with flashcards and questions.

Practise this topicRead the exam answerTopic hub

Exam focus

  • Read the explanation.
  • Check key terms.
  • Practise with linked questions.
Cambridge IGCSE EconomicsThe allocation of resources

Study support

Understand this objective

Quick explanation

Examine the connection between price elasticity of demand and total revenue/spending on a product, represented through both diagrams and calculations

  • This point belongs to Price elasticity of demand (PED), especially Price elasticity of demand (PED) outcomes.
  • You need to be able to examine the connection between price elasticity of demand and total revenue/spending on a product, represented through both diagrams and calculations.
  • The key ideas to know are Explain and Analyse.
  • Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.

Key concepts

ExplainAnalyse

Why it matters

This objective helps connect Price elasticity of demand (PED) outcomes to exam-style questions, flashcards, and revision notes for Price elasticity of demand (PED).

Revision tools

Choose how to practise

Back to topic hub
Flashcards10 linked cards

Flashcard 1 of 10

Press Space to flip, arrows to move
Practice Questions7 linked questions

Question 1 of 7

Choose an answer, get feedback, then move sideways through the set.

0 of 5 attempted

Paper 2 structured question: Price elasticity of demand (PED)

Paper 2Structured Questions1 marks

Description

Impact of Price Change on Revenue

The company decides to reduce the price of its product from $20 to $15. Previously, it sold 100 units per month. After the price reduction, sales increased to 150 units per month.

  1. a

    State What type of demand does this product exhibit?

    Aim for approximately 1 distinct marking point.

    [1]
Revision notestopic notes

Open the full topic revision notes when you are ready to review this objective in context.

Open revision notes

Related learning objectives

Revision hubs

Move back to a broader study route

Cambridge IGCSEEconomics resources