Elasticity

Q2(a) Weekly sales were 2.5 million sausage rolls at £1.00 in 2021; given a 2022 price of £1.20 and PED −0.2, find the new quantity.

Q2(b) With petrol cars' cross elasticity of demand at +0.64 against diesel car prices, state the likeliest effect of diesel cars becoming 10% cheaper.

Q2(b) Choose the label fitting a PED value of −0.2 (perfectly inelastic / relatively elastic / relatively inelastic / unit elastic).

Q6(a) Using Extract B and price elasticity of demand, explain how a switch towards meat substitutes could lift food companies' revenue.

Q6(c) Using the information supplied on UK video game sales and prices in 2022, discuss whether their price elasticity of demand is elastic.

Q4 Read off a vegan cheesecake demand diagram how sales revenue shifts when a slice goes from $3 to $4.

Q6 Work out what a 5% price rise does to sales, from PED figures for Lindt, Mars, Mondelez and Hershey bars.

Q9 Distinguish substitute from complementary goods, using cross elasticity figures linking hot drink prices to biscuit and chilled drink sales.

Q10 Work out how responsive UK bus travel is to rising average weekly earnings between 2022 and 2023.

Q6 Deduce how electric, hybrid and diesel cars relate to petrol cars in Norway from positive cross elasticity figures.

Q10 Work out the gap in flight demand growth between developed and developing countries from their income elasticities and 2022 income growth.

Q6 Work out what positive cross elasticity figures for Chilean milk, coffee and water say about their link to soft drinks.

Q8 Explain one determinant of how responsive energy demand is to price, using figures for Australia, Japan, India and the Philippines.

Q1(a) Give one reason why London's 18+ student bus fare (−0.7) shows different demand elasticity from the adult fare (−0.4).

Q1(b) Given a 4.8% increase in London bus ticket prices in 2022 and an adult PED of −0.4, identify the percentage decrease in adult demand for the 7-day bus ticket.

Q5(a) Tesla's Model 3 fell £4 200 from £42 990, with demand tipped to rise 15%: calculate price elasticity of demand, ceteris paribus.

Q5(c) Pick what most plausibly determines the Model 3's price elasticity of demand (rival EVs available / population change / dearer steel / unsold Model 3 stock).

Q6(c) Using Extract A, justify a likely figure for reusable cleaning products' income elasticity of demand.

Q1(a) Using Figure 1 and Extract A, set out the meaning of price inelastic demand for UK wholesale gas in 2021.

Q10 Calculate income elasticity for Chinese new car demand, using 2021 and 2022 sales and average earnings.

Q12(c) Judge whether Japanese demand for four food groups is elastic or inelastic from the given PED estimates.

Q3 Deduce how coffee and milk relate in North America from a cross elasticity estimate of -0.04.

Q4 Pick the point on a bottled energy drink demand curve where price elasticity of demand equals -1.

Q12(a) Define price elasticity of demand, as given in the Beijing chicken elasticity table.

Q12(b) Explain whether Beijing shoppers treat chicken as normal or inferior, given a 6.8% real income rise.

Q3 Deduce how Pepsi and Coca-Cola relate in North America from a cross elasticity figure of +0.62.

Q3 Deduce what Norwegian PED figures for diesel, petrol and electric cars imply about elasticity and producer revenue.

Q6 Deduce from a diagram what links PlayStation 5 and Xbox Series X consoles (substitutes / complements / unrelated / inferior).

Q7 Sketch how a 12.32% fall in Laotian real incomes shifts the market for domestic holidays, given YED of +1.36.

Q3(a) Identify the likely income elasticity of demand value for a luxury brownie, given falling demand as incomes fall.

Q4(b) With Esso, Tesco and Sainsbury's petrol all at £1.48 a litre, choose the cross elasticity value fitting close substitutes (−2.1 / −0.1 / +0.1 / +2.1).

Q6(a) Using Figure 1 and Extract A on television and streaming, set out how price elasticity of demand links to total revenue.

Q6(c) Examine what number cross elasticity of demand would probably take between rival UK streaming services.

Q10 Using Singapore household earnings and cinema ticket sales for 2020 and 2021, calculate income elasticity of demand.

Q2 Identify what makes demand price inelastic, given estimates for cereals and fruit (legal limits / large stocks / many substitutes / few substitutes).

Q3 Deduce the elasticity of demand for NBA basketball tickets from the price and quantity changes between 2021 and 2022.

Q6 Deduce what Norwegian cross-elasticity figures imply about electric and hybrid vehicle sales when diesel car prices rise.

Q10 From the table of US average incomes and car sales for 2011 and 2021, derive cars' income elasticity of demand, ceteris paribus.

Q11 With cross elasticity of +0.25 between milk and sugar-sweetened drinks, explain what a 5% rise in those drinks' prices means for the milk market.

Q3 Selected Mexican cities have estimated demand elasticities for underground rail tickets; read off the correct verdict on elasticity and revenue.

Q10 British Gas raised gas prices 22% in February 2021 and lost 350 000 of its 17 350 000 customers; calculate the price elasticity of demand, showing workings.

Q3 In the Netherlands, organic versus non-organic meat yields a cross elasticity of demand of +0.5; what does that show? (substitutes / normal goods / unrelated / complements)

Q7 US real incomes climbed 15% in April 2021 while margarine's income elasticity of demand is -0.2; sketch a diagram of the effect on margarine's equilibrium price and quantity.

Q2(a) Given a price elasticity of demand of −1.37 for sweetened drinks in Chile, calculate the percentage change in quantity demanded following a 5% price increase.

Q2(b) With cross price elasticity at +0.63, work out how far bottled water demand shifts in percentage terms when sweetened drinks rise 5% in price.

Q2(c) Using the Chilean drinks elasticity data, identify the combined effect of a fall in the price of sweetened drinks on revenue, and whether sweetened drinks and bottled water are complements or substitutes.

Q6(d) Fish and chips have a cross elasticity of −8; with 950 000 bags sold each day, calculate chip demand once fish prices climb 2%.

Q1(b) Examine, using Extract B, whether delivered food shows inelastic demand with respect to price but elastic demand with respect to income.

Q3 For Indonesia, cross elasticities of demand for maize, fish, meat and vegetables against the rice price are tabulated; select the valid conclusion.

Q4 A demand curve has 350 jars of coffee selling at £3 per 500g jar: what does it tell us about elasticity and total revenue?

Q6 Cinema ticket demand went from 250 000 tickets to 290 000 after real incomes grew 4%; compute income elasticity of demand.

Q10 From tabulated world sugar price and consumption figures for 2019 and 2020, work out sugar's price elasticity of demand, showing your method.

Q11 With cross elasticity between meat and fish at +0.13 in Bangladesh, explain how meat demand responds to fish prices rising 10%.

Q3 Income elasticities are listed for electricity, healthcare, bus travel and Caribbean holidays — pick the conclusion the table supports.

Q9 Give one reason behind the very low figure of -0.1 when US households buy natural gas (price elasticity of demand).

Q1(b) Examine two explanations for hand car wash demand rising while pay growth lags behind inflation, as described in Extract A.

Q3 Price elasticity of demand is tabulated for washing machines, refrigerators, dishwashers and clothes dryers; spot the consistent conclusion.

Q4 Using a demand curve for chocolate bars in Spain, calculate the change in total revenue when retailers cut the price from EUR1.50 to EUR1.30.

Q6 Read the Chilean table of cross elasticity figures linking water, milk and coffee to sugar-sweetened drinks, then state what may be concluded.

Q10 Netflix raised its US basic subscription from $7.99 to $8.99 with an estimated 8% fall in subscribers; calculate the price elasticity of demand, showing workings.

Q6 UK income elasticity of demand is estimated for tea, margarine, coffee and butter - choose the accurate interpretation.

Q10 Tea's cross elasticity with respect to coffee is +0.52; work out how much tea demand shifts when coffee prices climb 32%.

Q6 A table sets out income elasticity estimates for petrol, public transport, furniture and cars; say which reading is correct.

Q2(a) Bus travel has an income elasticity of −1.5 — identify what that implies (a 10% fare rise loses 15% of passengers / falling unemployment raises bus use / negative cross elasticity with rail / buses are an inferior good).

Q2(b) Explain a firm's motive for wanting demand for its products to become less price elastic.

Q6(a) Using Extract A, explain why a PED for higher education of roughly −0.5 matters to English universities.

Q10 Using Singapore's 2016 and 2017 data on mean annual income together with new car sales, calculate income elasticity of demand for cars, other things equal.

Q11 With Pepsi's cross elasticity of demand against Coca-Cola at +1.24, explain how a 10% rise in Coca-Cola's price would probably affect Pepsi's demand.

Q12(b) Using Extract A, explain how having substitutes available shapes palm oil's price elasticity of demand.

Q10 From the figures supplied, calculate income elasticity of demand covering trips abroad made by UK residents.

Q12(a) State what the term 'substitutes' means in Extract A — a brief, low-mark definition.

Q6 Given price elasticity of demand figures for business and leisure air travel, short-haul and long-haul, judge which claim about airline revenue and price responsiveness holds.

Q10 Work out how responsive overseas trips by Chinese citizens are to income, using 2016-17 earnings and visit data, showing workings.

Q6 A 5% smartphone price rise cut Western European sales by 4% in 2017; compute the resulting demand elasticity.

Q2(b) Explain why barring diesel cars from city centres cuts diesel fuel demand (irrational buyers / expected price rise / complementary goods / substitute goods).

Q3(a) Pick the plausible cross elasticity value for near substitutes priced alike at £7.99 monthly — Amazon Prime, Netflix, NowTV (−2.1 / −0.1 / +0.1 / +2.1).

Q3(b) With 2016 UK cinema admissions of 19.1m at £7.41 and elasticity −0.5, find revenue after a 3% rise to £7.63.

Q5(a) Given average weekly pocket money rising from £7 to £8.75 and a Freddo income elasticity of demand of −0.1, identify the percentage change in quantity demanded, ceteris paribus.

Q5(b) Set out one way income elasticity of demand matters commercially to whoever makes Freddos.

Q10 Centrica raised gas and electricity prices 12.5% in September 2017 and lost 800 000 of its 12 800 000 customers; calculate the price elasticity of demand, showing workings.

Q12(b) Australian weekly household real income grew 2.7% over 2008-2016; using Figure 1, explain how the quantity of lamb demanded would shift.

Q5 Using a diagram relating the price of Xbox consoles to the quantity demanded of PlayStation 4 consoles, identify the relationship between the two goods. (complements / inferior / substitutes / unrelated)

Q5 Using a demand curve for rice, identify at which of four points the price elasticity of demand will be unitary.

Q6 A table gives US income elasticity estimates for motor cars, ice cream, cheese and public transport: state what it shows.

Q2(a) Compute demand's price elasticity for the Daily Mail after its 60p to 65p rise cut sales by 5.41%, other things equal.

Q2(b) Given a cross elasticity of demand of 1.28 for gaming machines with respect to lottery ticket prices, explain the likely impact of the lottery ticket price rise from £1 to £2 on demand for gaming machines.

Q2(b) Pick the factor most likely to shape the Daily Mail's price elasticity of demand (competing titles on sale / population change / cheaper production / anticipated price rise).

Q4(a) Select the statement that correctly describes what median household income measures.

Q4(b) With UK median income up from £24 200 to £25 700 and bus journeys down 3%, decide whether buses are a normal or inferior good.

Q6(d) UK electricity's price elasticity of demand is −0.35 short run but −0.85 long run: examine two explanations for that shift.

Q1(b) With a cross elasticity of demand of 0.16 linking e-cigarettes to tobacco, state how far e-cigarette demand moves when tobacco prices climb 5%.

Q2(a) UK tea moved from £7.20 to £8.48 a kilo while volumes slid from 97m to 76m kilos — find tea's price elasticity of demand.

Q2(c) Classifying black tea as an inferior good means which measure must take a negative value? (XED / YED / PED / PES)

Q6(c) With the two goods substitutes, explain how shifting tobacco cigarette prices could move e-cigarette demand over time.

Q6(d) From Extract A, work out tobacco cigarettes' price elasticity of demand across high-income versus low-middle-income countries.

Q6(e) Using Figure 1, assess why price elasticity of demand differs between tobacco cigarettes and e-cigarettes.

Q5(a) Given a 20% fall in petrol prices and a price elasticity of demand of −0.2, identify the expected percentage change in quantity demanded. (−0.4% / +0.4% / −4% / +4%)

Q5(b) With petrol's price elasticity of demand at −0.2, explain how cutting prices would alter the total revenue earned by petrol stations.