CAIE A-Level Economics AS 2.2.5 Ped on Straight Line Demand Questions

Practise identifying unit elasticity on straight-line demand curves and interpreting how price elasticity changes as quantity and price move along the curve.

Exam points

Identify where price elasticity of demand is unit elastic on a straight-line demand curve and interpret movements along the curve.

[Maximum number: 1]

The diagram shows a demand curve for pineapples.

Figure for Question CAIE A-Level Economics AS 2.2.5 Ped on Straight Line Demand Questions question 1 — CAIE A-Level Economics AS

What happens to the value of price elasticity of demand (PED) when there is a movement from point X to point Y and what describes the value of PED at point Y ?

effect on

value of PED

value of

PED at Y

fall

elastic

fall

inelastic

rise

elastic

unchanged

unitary

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CAIE A-Level Economics AS 2.2.5 Ped on Straight Line Demand Questions question 1