CAIE IGCSE Economics 2.6.2 Calculation of Ped Questions

Practise Cambridge IGCSE Economics by calculating PED, classifying demand responsiveness and applying elasticity to revenue.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Calculate price elasticity of demand from percentage changes in price and quantity demanded.
  • Interpret PED values as elastic, inelastic or unit elastic demand.
  • Use PED to predict how price changes affect quantity demanded and revenue.

CAIE IGCSE Economics 2.6.2 Calculation of Ped Questions question 1

[Maximum number: 1]

A German car producer estimates the price elasticity of demand (PED) for its cars is -2.0 . What can be concluded from this information?

A

its cars are price elastic

B

its cars are price inelastic

C

its cars are unitary elastic

D

its cars take time to produce

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