CAIE IGCSE Economics 2.6.4 Ped Consumer Expenditure and Firms Revenue Questions
Practise Cambridge IGCSE Economics by linking price elasticity of demand to total revenue and evaluating pricing decisions.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Explain the relationship between price elasticity of demand and total revenue.
- Predict changes in total revenue when price changes for elastic or inelastic demand.
- Evaluate advantages and disadvantages of producing goods with different PED values.
CAIE IGCSE Economics 2.6.4 Ped Consumer Expenditure and Firms Revenue Questions question 1
[Maximum number: 1]
The price elasticity of demand (PED) of a good is -1.
What will happen to both demand and total revenue as price increases?
A
demand will fall and total revenue will not change
B
demand will fall and total revenue will rise
C
demand will rise and total revenue will not change
D
demand will rise and total revenue will rise
A
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