A group of dog-grooming salons tested a different price for a standard appointment. The salons met every booking, and other influences on demand were unchanged.
| Period | Price per appointment | Weekly total revenue |
|---|---|---|
| Before the trial | £40 | £12,000 |
| During the trial | £44 | £11,220 |
Calculate the price elasticity of demand for standard appointments over the trial.
Assuming PED stays the same, state whether a further small price rise above £44 is likely to increase or decrease weekly 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.