0455.2.7.4 — PED and total spending on a product/ The relationship between PED and total spending revenue on a product/revenue, both in a diagram and as : past paper questions
Real questions on 0455.2.7.4 — ped and total spending on a product/ the relationship between ped and total spending revenue on a product/revenue, both in a diagram and as
The newest 7 of 7 written questions. Open one to see it on the real paper.
- 0455/21 · May/June 2026 · Q2b[4]
Explain how price elasticity of demand influences the total spending on a product when its price changes.
See it on the paper → - 0455/22 · February/March 2026 · Q1h[6]
Discuss whether or not the demand for gold will be more price‑elastic in the future. Section B Answer any three questions. Each question is introduced by stimulus material. In your answers you may refer to the material and/ or other examples you have studied.
See it on the paper → - 0455/21 · October/November 2024 · Q1d[4]
Explain one advantage and one disadvantage of producing a product which is price-inelastic in demand such as oil.
See it on the paper → - 0455/12 · October/November 2023 · Q8[1]
The owner of a hotel in Malaysia finds that the price elasticity of demand (PED) for accommodation in the area is –1.7. If the hotel owner decreases the price of a room by 5%, how would the demand for a room change?
See it on the paper → - 0455/23 · October/November 2023 · Q1c[2]
Explain one way price elasticity of demand may influence firms’ decision making.
See it on the paper → - 0455/22 · May/June 2022 · Q3b[4]
why demand for soap is more price-inelastic than demand for a luxury brand of perfume.
See it on the paper → - 0455/21 · May/June 2019 · Q6c[6]
Analyse how a change in the PED for its products may benefit a firm.
See it on the paper →
What examiners said
Comprehensive responses • Many candidates applied at least one factor influencing price elasticity of demand to the context of gold. • Many candidates recognised that the question required discussing future changes in elasticity, not current demand. • Some candidates explained clearly how these factors could make gold either more elastic or more inelastic in the future. Limited responses • Some c...
— Examiner report, February/March 2026, 0455/22 Q1(h) (Cambridge)
This was quite well answered. Many candidates wrote about the difference in the extent to which the two products were necessities and the proportion of income that their purchase takes. A smaller proportion wrote about the possible difference in the availability of substitutes and whether the purchase could be postponed.
— Examiner report, May/June 2022, 0455/22 Q3(b) (Cambridge)
Candidates need to read carefully what the question is asking rather than make quick decisions to write about a concept they have learnt. In this instance, many candidates did not pick up on a change in elasticity and therefore simply analysed the effect of having an elastic or inelastic demand. Those who did write about the change in elasticity generally gave good answers although very few mentio...
— Examiner report, May/June 2019, 0455/21 Q6(c) (Cambridge)
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