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1.3 How prices are determined

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Question 33

A music venue charges £30.00 and sells 1000 tickets. It estimates PED at -2.0 and is considering a 5% price cut. Its revenue target is £31,000. Assuming PED predicts the quantity response exactly, which assessment is correct?

[1]
A

Price £28.50, 1,050 tickets and the revenue target is not met

B

Price £28.50, 1,100 tickets and the revenue target is met

C

Price £30.00, 1,100 tickets and the revenue target is met

D

Price £31.50, 900 tickets and the revenue target is not met

Markscheme

1.3 How prices are determined Questions

  1. GCSE
  2. /Economics
  3. /1.3 How prices are determined

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.

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