A shop cuts a product's price from £50 to £45 and sales rise from 200 to 230 units. Using percentage changes from the original values, which statement is correct?
Price elasticity of demand is 0.67 and total revenue falls
Price elasticity of demand is 1.00 and total revenue is unchanged
Price elasticity of demand is 1.50 and total revenue rises from £10,000 to £10,350
Price elasticity of demand is 2.00 and total revenue rises to £11,500
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.