Edexcel A Level · 9EC0 · Theme 1: Introduction to markets and market failure
1.2.3 Price, income and cross elasticities of demand
Also Edexcel AS 8EC0
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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