Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 11
9708Price elasticity, income elasticity and cross elasticity of demand
The price elasticity of demand for a high-quality smartphone is elastic. The price of the smartphone decreases. Which combination describes the impact of a fall in the smartphone's price on the quantity demanded and total revenue?
- Arises by a greater percentage than the price fall / falls
- Brises by a greater percentage than the price fall / rises
- Crises by a smaller percentage than the price fall / falls
- Drises by a smaller percentage than the price fall / rises
As printed in the paper
Show the answer
Correct answer: B. rises by a greater percentage than the price fall / rises
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.