A rail operator estimates that the price elasticity of demand for weekday commuter journeys is -0.3, while the estimate for weekend leisure journeys is -1.8. It is considering increasing both fares by 5%. Evaluate the importance of these price elasticity estimates to the rail operator and its passengers.
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.