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

Price elasticity of demand — practice question

The diagram illustrates an industry’s total revenue at different quantities demanded. Which values need to be placed at points 1, 2 and 3 to show the price elasticity of demand (PED) at that point?

  • Apoint1: PED>1, point2: PED=0, point3: PED<1
  • Bpoint1: PED>1, point2: PED=1, point3: PED<1
  • Cpoint1: PED<1, point2: PED=0, point3: PED>1
  • Dpoint1: PED<1, point2: PED=1, point3: PED>1

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI