Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

The price elasticity of demand (PED) for a good is $-1$. What happens to both demand and total revenue when price rises?

  • Ademand will fall and total revenue will not change
  • Bdemand will fall and total revenue will rise
  • Cdemand will rise and total revenue will not change
  • Ddemand will rise and total revenue will rise

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