
Price falls from £12 at A to £9 at B and weekly quantity demanded rises from 40 to 60. Using percentage changes from the original values, which statement is correct?
Price elasticity of demand is 0.5 and total revenue falls from £480 to £360.
Price elasticity of demand is 0.5 and total revenue rises from £480 to £540.
Price elasticity of demand is 2.0 and total revenue rises from £480 to £540.
Price elasticity of demand is 2.0 and total revenue falls from £480 to £360.
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.