A company sells adult tickets for guided cave tours. Each ticket admits one adult to one tour. Table 1 shows the ticket price and the number of adult tickets sold before and after a price change. No other factor affecting demand changed.
| Before the price change | After the price change | |
|---|---|---|
| Price per adult ticket | £20 | £22 |
| Adult tickets sold per month | 2,400 | 2,040 |
Calculate the price elasticity of demand for adult tickets for the guided cave tours.
Using your answer to part (a), explain whether the price change increased or decreased the company's monthly total revenue from adult ticket sales.
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.