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  2. Economics Edexcel A
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1.2.3 Price, income and cross elasticities of demand

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Question 4

Extract D: The premium price of pet pampering and mobile veterinary care

The market for 24/7 on-demand mobile veterinary clinics has expanded significantly in affluent suburban areas. Operators like VetsOnWheels and PawMed dispatch fully-equipped medical vans directly to owners' driveways within an hour, charging a flat £75 call-out fee alongside treatment prices that are up to 45% higher than traditional veterinary practices. Despite these high costs, busy, high-earning dual-income households and owners of premium pedigree breeds frequently utilize these services to avoid the stress of transporting their pets. Industry surveys indicate that demand is highly sensitive to changes in real disposable income, with revenues climbing sharply during periods of consumer confidence and high economic growth.

However, local veterinary associations have raised concerns. The rapid growth of mobile services has led to a shortage of qualified veterinary surgeons in community clinics, driving up costs for low-income pet owners. Furthermore, critics point out that mobile vets often refer complex emergency cases to standard 24-hour animal hospitals, avoiding the high overhead costs of running intensive care units while absorbing the most profitable routine consultations. While mobile operators argue they provide a less stressful and highly essential service for anxious animals, veterinary unions are calling for tighter regulation of mobile clinic boundaries.


With reference to Extract D, examine whether the demand for mobile veterinary clinic services is price inelastic and income elastic.

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1.2.3 Price, income and cross elasticities of demand Questions

  1. A Level
  2. /Economics
  3. /1.2.3 Price, income and cross elasticities of demand