A supermarket reduces the price of table salt by 10%, and the quantity sold increases by 2%. Which outcome is most likely for the supermarket?
Total revenue falls: the 10% price reduction outweighs the 2% increase in sales.
Total revenue is unchanged: the price reduction and sales increase balance.
Total revenue rises: the 2% increase in sales outweighs the price reduction.
Total revenue cannot be identified from the 10% price reduction and 2% sales increase.
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.