CAIE A-Level Economics 2.2.4 Elasticity Values

CAIE A-Level Economics 2.2.4 Elasticity Values
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise classifying perfectly elastic, elastic, unitary, inelastic and perfectly inelastic responses from coefficient values, curve shapes and total-revenue changes.

How this is tested

  • classify absolute elasticity above one as elastic, below one as inelastic and equal to one as unitary
  • recognise horizontal and vertical curves as perfectly elastic and perfectly inelastic cases
  • infer elasticity from total revenue when price changes, keeping direction and proportional response consistent

Question 6

[Maximum number: 1]

A manufacturer progressively reduces the price of his product.
The table shows the outcome of this policy.

Table for Question 6 — CAIE A-Level Economics

What is the price elasticity of demand for the product?

A

perfectly inelastic

B

relatively inelastic

C

perfectly elastic

D

unitary