I was wondering what the answer to 1C would be and any ideas for question 2? thanks so much.
Can anyone help me with this A2 economics question ( revenue) Watch
- Thread Starter
Last edited by cowgoesmoo; 05-07-2014 at 21:59.
- 05-07-2014 21:52
- 08-07-2014 10:29
You should also check out the forum to see if there's any other threads there which might be helpful to you! http://www.thestudentroom.co.uk/forumdisplay.php?f=884
- Study Helper
- 12-07-2014 03:18
What did you get for the PED between the price points £400 and £360: PED = %change in quantity / %change in price
Just remember that this is a data question. so for number 2, quote some of the relevant bit (at the bottom) and link it in with how demand is more elastic at lower quantities (when price is high). If you don't understand why, look at the percentages in the formula. Similarly, (but separate to the point about price in brackets) when price is high the %change in price is lower, and so PED is higher.
Also, revenue is higher at the unit elastic points. Think about how you can include that in your answer for a bonus.
Feel free to reply and ask more questions or clarify something.