Question 4(b)
[Maximum number: 12]
Evaluate the usefulness to PPP of elasticity measures when deciding on the marketing mix for the new cheese pies in export markets.
CAIE A-Level Business 8.1.1 Elasticity
Practise PED, YED and promotional elasticity calculations, then use the results to judge pricing, promotion and sales forecasts.
How this is tested
- calculate PED, YED or PrED from percentage changes in price, income or promotion
- use elasticity values to predict revenue, demand or sales changes from case data
- evaluate limits of elasticity when choosing a marketing mix or sales forecast