Economics · Oct / Nov 2019 · Paper 12 · Question 7
2281Price elasticity of demand (PED)
A railway company increases ticket prices by 10% for travel between 06:00 and 09:00, causing a reduction in demand by 2%. After 09:00 it reduces ticket prices by 5%, resulting in a 7% increase in demand. What is the price elasticity of demand in response to these price changes?
- Aelastic / elastic
- Belastic / inelastic
- Cinelastic / elastic
- Dinelastic / inelastic
As printed in the paper
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Correct answer: C. inelastic / elastic
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