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Cambridge IGCSE Economics practice

What is the primary factor that determines whether demand is elastic or inelastic?

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Show answerPrice elasticity of demand (PED) revisionRevise the key idea

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MCQ

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cambridge_mcq

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Topic

Price elasticity of demand (PED)

Exam-style question

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What is the primary factor that determines whether demand is elastic or inelastic?.

  1. A.Availability of substitutes
  2. B.Consumer income
  3. C.Time period
  4. D.Brand loyalty

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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]