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1.3 How prices are determined

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Question 3

image The same percentage price rise from P₀ to P₁ is shown for Products X and Y. Based on the diagram, which conclusion is most likely?

[1]
A

Both products have unitary price elasticity because the price change is the same

B

Product X has the more price-elastic demand and is more likely to experience a fall in total revenue

C

Product X has the more price-inelastic demand, so its total revenue must fall

D

Product Y has the more price-elastic demand, so its quantity demanded falls proportionately more

Markscheme

1.3 How prices are determined Questions

  1. GCSE
  2. /Economics
  3. /1.3 How prices are determined

236 exam-style questions on AQA GCSE Economics 1.3 How prices are determined, covering 1.3.1a Demand and the factors that influence it, 1.3.1b The demand curve, 1.3.2a Supply and the factors that influence it, 1.3.2b The supply curve, 1.3.3a Determining equilibrium price, 1.3.3b Applying diagrams and showing revenue, 1.3.4a Complements and substitutes, 1.3.4b Effects of changes on related markets, 1.3.5a Price elasticity of demand, 1.3.5b Factors affecting price elasticity of demand, 1.3.5c Measuring PED and its implications, 1.3.6a Price elasticity of supply, 1.3.6b Factors affecting price elasticity of supply, and 1.3.6c Measuring PES and its implications. Each one has a worked solution and a mark scheme showing where the marks go.

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