A producer of ready meals raises its price. The table shows its weekly sales before and after the price rise.
| Price per meal | Quantity demanded and sold per week | |
|---|---|---|
| Before the price rise | £2.50 | 5,000 |
| After the price rise | £2.70 | 4,400 |
Calculate the price elasticity of demand for the ready meals.
Explain the effect of the price rise on the producer’s total revenue.
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.