Edexcel IGCSE Economics 1.1.4.f factors influencing PED

Edexcel IGCSE Economics syllabusEconomics 4EC1First assessment 2019

Practise PED factor questions by linking substitutes, necessity, loyalty and time to elastic or inelastic demand in context.

How this is tested

Explain how substitutes make demand for a soft drink or café coffee more elastic.
Link necessity, loyalty or no substitutes to price inelastic demand for concert tickets.
Compare short-run and long-run PED as consumers adjust habits over time.

[Maximum number: 3]

Six months after the price for a soft drink increased, its price elasticity of demand (PED) changed from -1.5 to -2.0.

Explain one reason why demand for a product, such as a soft drink, usually becomes more price elastic over time.