A rail company raises fares by 8%. Passenger journeys fall by 4%, while its cost per journey is unchanged. Which outcome is most likely?
Demand is elastic and total revenue falls
Demand is inelastic and total revenue rises
Demand is unitary elastic and total revenue is unchanged
Demand is perfectly inelastic and total revenue rises by 4%
41 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.