Price elasticity of demand (PED)
2.6What the syllabus asks of you
- Definition of PED
- Calculation of PED: calculation of PED using the formula
- Calculation of PED: interpretation of the significance of the PED value: perfectly inelastic, inelastic, unitary, elastic, perfectly elastic
- Calculation of PED: drawing and interpretation of demand curve diagrams to show different PED
- Determinants of PED: main influences on whether demand is elastic or inelastic
- PED, consumer expenditure and firms’ revenue: effect of price changes on the amount spent by consumers and revenue raised by firms, shown both in a diagram and as a calculation
- PED, consumer expenditure and firms’ revenue: relationship between PED and the amount spent by consumers and revenue raised by firms
- Significance of PED: implications of PED for decision-making by consumers, workers, producers/firms and government
Read the notes first
Chapter 2: Price elasticity of demand (PED)
Drill this topic
Every question on Price elasticity of demand (PED), untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
27 questions
1May / June 2026 · Paper 12 · Q7Show mark scheme →
A5%
B10%
C15%
D20%
Mark scheme
2May / June 2025 · Paper 11 · Q7Show mark scheme →
Afrom $6 to $5
Bfrom $5 to $4
Cfrom $4 to $3
Dfrom $3 to $2
Mark scheme
3Oct / Nov 2024 · Paper 12 · Q8Show mark scheme →
Agreater than 1
Bunitary
Cless than 1
Dzero
Mark scheme
4Oct / Nov 2024 · Paper 13 · Q7Show mark scheme →
A0.4
B2.0
C2.5
D20
Mark scheme
5May / June 2024 · Paper 11 · Q7Show mark scheme →
Aprice falls; price elasticity of demand between 0 and 1
Bprice falls; price elasticity of demand equal to 1
Cprice rises; price elasticity of demand between 0 and 1
Dprice rises; price elasticity of demand greater than 1
Mark scheme
6Oct / Nov 2023 · Paper 12 · Q7Show mark scheme →
Azero
Bbetween 0 and 1
Cgreater than 1
D1
Mark scheme
7Oct / Nov 2023 · Paper 12 · Q8Show mark scheme →
AIt would decrease by 2.9%.
BIt would decrease by 8.5%.
CIt would increase by 2.9%.
DIt would increase by 8.5%.
Mark scheme
8May / June 2023 · Paper 11 · Q7Show mark scheme →
AThe product has a close substitute.
BThe product is a habit-forming good.
CThe product is a necessity.
DThe product requires only a small proportion of consumer income.
Mark scheme
9May / June 2023 · Paper 11 · Q21Show mark scheme →
Adirect; price elastic
Bdirect; price inelastic
Cindirect; price elastic
Dindirect; price inelastic
Mark scheme
10May / June 2023 · Paper 12 · Q6Show mark scheme →
Aperfectly elastic
Brelatively elastic
Crelatively inelastic
Dunitary elastic
Mark scheme
11Oct / Nov 2022 · Paper 12 · Q7Show mark scheme →
Athe responsiveness of quantity demanded of a product to a change in income of consumers
Bthe responsiveness of quantity demanded of a product to a change in the price of a complementary product
Cthe responsiveness of quantity demanded of a product to a change in the price of that product
Dthe responsiveness of quantity demanded of a product to a change in the price of a substitute product
Mark scheme
12May / June 2022 · Paper 12 · Q7Show mark scheme →
A
B
C
D
Mark scheme
13Oct / Nov 2021 · Paper 12 · Q8Show mark scheme →
Afrom $6 to $5
Bfrom $5 to $4
Cfrom $4 to $3
Dfrom $3 to $2
Mark scheme
14Oct / Nov 2021 · Paper 13 · Q8Show mark scheme →
A0
B1
Cless than 1
Dgreater than 1
Mark scheme
15Oct / Nov 2020 · Paper 13 · Q7Show mark scheme →
ADiagram A: price of salt on vertical axis, quantity on horizontal axis, downward-sloping demand curve D, with P2 above P1
BDiagram B: price of salt on vertical axis, quantity on horizontal axis, flatter downward-sloping demand curve D, with P2 above P1
CDiagram C: price of salt on vertical axis, quantity on horizontal axis, horizontal demand curve D at P1, with P2 above P1
DDiagram D: price of salt on vertical axis, quantity on horizontal axis, steep downward-sloping demand curve D, with P2 above P1
Mark scheme
16May / June 2020 · Paper 11 · Q4Show mark scheme →
Aeconomic growth
Belasticity of demand
Cinflation
Dthe balance of payments
Mark scheme
17May / June 2020 · Paper 12 · Q7Show mark scheme →
A–0.4
B–0.8
C–1.25
D–2.0
Mark scheme
18Oct / Nov 2019 · Paper 12 · Q7Show mark scheme →
Aelastic / elastic
Belastic / inelastic
Cinelastic / elastic
Dinelastic / inelastic
Mark scheme
19Oct / Nov 2019 · Paper 13 · Q7Show mark scheme →
Abutter
Bcars
Cfurniture
Dpetrol
Mark scheme
20May / June 2019 · Paper 12 · Q6Show mark scheme →
APrice increases will raise the producers’ revenue.
BProducers are unable to respond to a price rise.
CThe product is one with many substitutes.
DThere are 20 people able to buy the product.
Mark scheme
21May / June 2019 · Paper 12 · Q7Show mark scheme →
Aelastic
Binelastic
Cperfectly elastic
Dunit elastic
Mark scheme
22Oct / Nov 2018 · Paper 12 · Q7Show mark scheme →
A0.25
B0.5
C1.0
D2.0
Mark scheme
23Oct / Nov 2018 · Paper 13 · Q7Show mark scheme →
A0.25
B0.5
C1.0
D2.0
Mark scheme
24Oct / Nov 2017 · Paper 12 · Q6Show mark scheme →
A0.2
B0.5
C2.0
D5.0
Mark scheme
25Oct / Nov 2017 · Paper 13 · Q6Show mark scheme →
A0.2
B0.5
C2.0
D5.0
Mark scheme
26May / June 2017 · Paper 11 · Q6Show mark scheme →
Azone W
Bzone X
Czone Y
Dzone Z
Mark scheme
27Oct / Nov 2016 · Paper 13 · Q5Show mark scheme →
Aprice of cocoa bean products
Bproduction of cocoa beans
Cprofits of cocoa bean producers
Dunemployment among cocoa bean farmers
Mark scheme