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

Price elasticity of demand — practice question

The market price of a product increased from $8 to $10 and, because of this, market demand dropped from 20 000 to 8000 per week. Consumer X’s demand decreased from 30 to 24 and consumer Y’s demand fell from 100 to 60 per week. What conclusion can be drawn from this information?

  • AConsumer X’s demand for the product was more elastic than the market demand.
  • BConsumer X’s percentage share of the market increased.
  • CProducer’s total profit fell.
  • DProducer’s total revenue rose.

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