Table 1 shows possible changes affecting price elasticity of demand.
| Row | Change | Proposed effect on PED |
|---|---|---|
| A | More close substitutes become available | Demand becomes less price elastic |
| B | The product takes a larger share of household income | Demand becomes more price elastic |
| C | The product becomes more necessary | Demand becomes more price elastic |
| D | Consumers have less time to adjust | Demand becomes more price elastic |
Using Table 1, which row correctly identifies the most likely effect?
Row A
Row B
Row C
Row D
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.