0455.2.7.2 — calculation of PED Calculation of PED using the formula and interpreting the significance of the result. Drawing and interpretation of deman: past paper questions
Real questions on 0455.2.7.2 — calculation of ped calculation of ped using the formula and interpreting the significance of the result. drawing and interpretation of deman
The newest 8 of 8 written questions. Open one to see it on the real paper.
- 0455/12 · October/November 2024 · Q8[1]
When the price of shirts rises from $8 to $10, the demand for shirts falls from 1000 to 500. What is the value of the price elasticity of demand for shirts?
See it on the paper → - 0455/11 · October/November 2021 · Q8[1]
The price elasticity of demand (PED) for bottled water is – 0.9. What will happen to the quantity demanded for bottled water if its price increases by 10%?
See it on the paper → - 0455/12 · October/November 2021 · Q8[1]
The table shows the quantity demanded at different prices. For which fall in price is the demand price-inelastic?
See it on the paper → - 0455/22 · October/November 2020 · Q1a[1]
the percentage of total world output of palm oil produced by Indonesia in 2017.
See it on the paper → - 0455/12 · May/June 2020 · Q7[1]
The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread?
See it on the paper → - 0455/11 · May/June 2019 · Q7[1]
Following a 20% increase in price, what will be the change in the quantity demanded?
See it on the paper → - 0455/12 · May/June 2019 · Q7[1]
A mobile (cell) phone operator increases the price of making calls on its network. After the price increase, the revenue of the mobile phone operator falls by 10%. What is the price elasticity of demand (PED) for the mobile operator’s service?
See it on the paper → - 0455/22 · February/March 2019 · Q1b[2]
Explain, using information from the extract, whether demand for Indian tractors was price-elastic or price-inelastic in 2015.
See it on the paper →
What examiners said
Question 8 was answered correctly by 35 per cent of the candidates who chose option D. 23 per cent chose option A, 27 per cent chose option B and 15 per cent chose option C. For demand to be price-inelastic a fall in the price would result in a decrease in the total revenue. The change in price from $6 to $5 (option A), results in an increase in total revenue from $18 to $20. Similar calculations...
— Examiner report, October/November 2021, 0455/12 Q8 (Cambridge)
Most candidates were able to calculate the percentage of total world output of palm oil produced by Indonesia in 2017. The method was 60 / 36 x 100.
— Examiner report, October/November 2020, 0455/22 Q1(a) (Cambridge)
Many candidates recognised that demand is price-inelastic if a rise in price results in a rise in revenue. It was disappointing that a relatively high number of candidates thought that demand must be price-elastic if a rise in price causes demand to fall. As demand will fall in the case of both elastic and inelastic demand; what candidates need to consider is the extent of the change. How revenue...
— Examiner report, February/March 2019, 0455/22 Q1(b) (Cambridge)
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