Hey there! Sign in to join this conversationNew here? Join for free

Can anyone help me with this A2 economics question ( revenue) Watch

    • Thread Starter
    Offline

    0
    ReputationRep:
    I was wondering what the answer to 1C would be and any ideas for question 2? thanks so much.Name:  IMG_0739[1].JPG
Views: 94
Size:  109.3 KB
    Offline

    18
    ReputationRep:
    (Original post by cowgoesmoo)
    I was wondering what the answer to 1C would be and any ideas for question 2? thanks so much.Name:  IMG_0739[1].JPG
Views: 94
Size:  109.3 KB
    Heya, I'm going to put this in the Economics forum for you as you should get more responses there.

    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
    Online

    17
    ReputationRep:
    (Original post by cowgoesmoo)
    I was wondering what the answer to 1C would be and any ideas for question 2? thanks so much.Name:  IMG_0739[1].JPG
Views: 94
Size:  109.3 KB
    Do you know how to do 1c? you need the Price elasticity of demand formula. You've probably done it correctly if you know the formula.

    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.
    Name:  220px-Price_elasticity_of_demand_and_revenue.svg.png
Views: 58
Size:  5.0 KB

    Feel free to reply and ask more questions or clarify something.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What newspaper do you read/prefer?
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.