Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 10

9708Price elasticity, income elasticity and cross elasticity of demand

The price of a pizza has increased from $8 to $10. This leads to a decrease in quantity demanded of 12.5%. What is the price elasticity of demand of pizza?

A0.5
B0.8
C1.6
D2.0

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Correct answer: A. 0.5

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