A launderette and a portrait studio record the following changes after increasing their prices.
| Business | Change in own price | Change in quantity demanded |
|---|---|---|
| Launderette | rises by 10% | weekly wash cycles fall by 4% |
| Portrait studio | rises by 5% | monthly bookings fall by 10% |
Which statement is correct?
The launderette's PED is -0.4 and its revenue falls, while the portrait studio's PED is -2.0 and its revenue rises
The launderette's PED is -2.5 and its revenue falls, while the portrait studio's PED is -0.5 and its revenue rises
The launderette's PED is -0.4 and its revenue rises, while the portrait studio's PED is -2.0 and its revenue falls
The launderette's PED is -2.5 and its revenue rises, while the portrait studio's PED is -0.5 and its revenue falls
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.