A firm faces price-elastic demand. Which price change is most likely to increase its total revenue?
A price rise because quantity demanded will fall proportionately more
A price rise because quantity demanded will not change
A price cut because quantity demanded will rise proportionately more
A price cut because quantity demanded will rise proportionately less
82 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.