A heating oil supplier increased its price per litre. All other influences on demand remained unchanged. The table shows the price and quantity demanded from the supplier before and after the price increase.
| Price per litre | Quantity demanded per week | |
|---|---|---|
| Before the price increase | £0.80 | 250,000 litres |
| After the price increase | £0.88 | 242,500 litres |
Calculate the price elasticity of demand (PED) for heating oil over this price range. Show your working.
Calculate the change in the supplier's weekly total revenue after the price increase.
Explain why the change in total revenue is consistent with your answer to part (a).
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.