AQA A Level · 7136 · Paper 1: Markets and market failure
4.1.3.2 Price, income and cross elasticities of demand
Also AQA AS 7135: 3.1.2.2
Everything you need for questions on price, income and cross elasticities of demand, in the words examiners reward. An interactive seven-step lesson goes with it.
What's on this sheet
- Price elasticity of demand (PED)
- What makes demand price elastic?
- PED and total revenue
- Income (YED) and cross (XED) elasticity
- Why elasticities matter
- Classic question: how useful is PED to a firm?
- Side 2: practice tasks, where the marks go, and exam-style questions
- Separate answer key
The lesson in seven steps
- Set the price, watch the revenue
- Sort the goods
- What does the number tell you?
- Elasticity trainer
- Using elasticity in decisions
- Build the chain
- Exam practice
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