Question 13
The price rises from £25 at A to £27.50 at B, while weekly quantity demanded falls from 800 to 680. Using percentage changes from the original values, which statement is correct?
Price elasticity of demand is 1.5 and total revenue falls from £20,000 to £18,700
Price elasticity of demand is 0.67 and total revenue rises to £22,000
Price elasticity of demand is 1.5 and total revenue rises to £22,000
Price elasticity of demand is 0.8 and total revenue falls to £17,000
2.2 Demand Questions
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.