Two service providers are considering price increases. Each PED coefficient predicts the quantity response exactly.
| Service | Current price | Proposed price | Current weekly quantity demanded | PED |
|---|---|---|---|---|
| Cycle-repair appointments | £25.00 | £27.50 | 320 | -0.5 |
| Evening pottery class places | £40.00 | £44.00 | 200 | -1.5 |
Calculate the new weekly total revenue for each service provider.
Explain why the proposed price increases have different effects on the providers' 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.