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

Price elasticity of demand — practice question

(a)[8]

Explain the importance of cross elasticity of demand values that are negative, positive and zero.

(b)[12]

Discuss the extent to which the concepts of price elasticity of demand, income elasticity of demand and price elasticity of supply would be useful to an organisation in charge of increasing tourism at a holiday resort.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge: definition of what cross elasticity of demand measures (the link between a change in the price of one product and a change in demand for another).” …

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