Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

(a)[8]

Explain what is meant by ‘price elasticity of demand’ and, using examples, outline the factors that would make demand for a good relatively price-elastic.

(b)[12]

Discuss why entrepreneurs may wish to alter the price elasticity of demand for their products, and assess how far this can be done.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “For showing knowledge and understanding of price elasticity of demand and what 'price elastic' means.” …

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Step-by-step worked solution
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