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

Price elasticity of demand — practice question

(a)[8]

Using a formula, explain what is meant by the term price elasticity of demand for a product and assess the extent to which it helps an entrepreneur predict the effect of price changes on the total expenditure on their product.

(b)[12]

Assess whether price elasticity of supply or cross elasticity of demand will be more useful to a business that wants to raise its total sales in a growing economy.

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