ConceptConceptDocsDocuments

Pearson Edexcel IAL Economics 1.3.2.3g relationship between price elasti

Practise using demand diagrams and PED values to decide whether a price change raises, lowers or leaves total revenue unchanged.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • calculate total revenue before and after a price change using diagram data
  • link elastic or inelastic demand to whether total revenue rises or falls
  • interpret average and marginal revenue curves when a firm changes price

1.3.2.3g - relationship between price elasticity of demand and total cross-elasticities revenue. question 1

[Maximum number: 1]

The table shows the estimated price elasticity of demand for different car types in Norway.

Table for Question 1.3.2.3g - relationship between price elasticity of demand and total cross-elasticities revenue. question 1 — Edexcel A-Level Economics AS
A

Demand for all three car types is price inelastic

B

Demand for all three car types is price elastic

C

An increase in the price of diesel cars will result in an increase in the total revenue for diesel car manufacturers

D

An increase in the price of electric cars will result in an increase in the total revenue for electric car manufacturers

All question bank results loaded