Price elasticity of demand (PED): past paper questions
Real questions on price elasticity of demand (ped)
The newest 13 of 13 written questions. Open one to see it on the real paper.
- 2281/21 · 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 → - 2281/22 · October/November 2025 · Q2c[6]
Analyse how price elasticity of demand can influence a firm’s pricing decisions.
See it on the paper → - 2281/21 · May/June 2025 · Q2c[6]
Analyse the influences on whether demand for shoes is elastic or inelastic.
See it on the paper → - 2281/23 · October/November 2023 · Q1c[2]
Explain one way price elasticity of demand may influence firms’ decision making.
See it on the paper → - 2281/22 · May/June 2023 · Q4c[6]
Analyse how an increase in the price of milk may affect the revenue earned by milk producers and soft drinks producers.
See it on the paper → - 2281/23 · October/November 2022 · Q4a[2]
Identify two determinants of price elasticity of demand.
See it on the paper → - 2281/22 · May/June 2022 · Q3b[4]
Explain why demand for soap is more price-inelastic than demand for a luxury brand of perfume.
See it on the paper → - 2281/22 · May/June 2021 · Q1c[2]
Explain one reason why demand for cherries is price-elastic.
See it on the paper → - 2281/22 · October/November 2020 · Q4d[8]
Discuss whether or not demand for cars will become more price-elastic in the future.
See it on the paper → - 2281/22 · May/June 2020 · Q2b[4]
Explain two influences on whether demand for a product is price-elastic or price-inelastic.
See it on the paper → - 2281/21 · May/June 2019 · Q6c[6]
Analyse how a change in the PED for its products may benefit a firm.
See it on the paper → - 2281/22 · May/June 2019 · Q2b[4]
Explain what effect more firms producing tyres would have on the PED of individual firms’ tyres.
See it on the paper → - 2281/22 · May/June 2019 · Q7a[2]
State the formula used to calculate PED.
See it on the paper →
What examiners said
Few answered this correctly. The example in the source material was elastic demand within the tourist industry. If the product is elastic in demand, firms would lower the price to increase revenue. Higher demand is not sufficient. A common answer of higher profits is incorrect as without knowing the change in costs, it would not be possible to calculate profits. A typical answer which did not answ...
— Examiner report, October/November 2023, 2281/23 Q1(c) (Cambridge)
The analysis of the effect of an increase in the price of milk on the reasons caused by soft drinks producers was relatively straightforward. Most candidates recognised that milk and soft drinks may be substitutes, that demand for soft drinks may increase and, as a result, the revenue of soft drinks may increase. Most candidates also recognised that demand for milk would fall. However, strong anal...
— Examiner report, May/June 2023, 2281/22 Q4(c) (Cambridge)
This was poorly answered for a number of reasons. Some simply explained what price elasticity was rather than what determined it. A common error was to refer to changes in demand and price or to give examples of what affected the elasticity of supply e.g. time. Quite a few others stated ‘wants’ and ‘needs’, which is too vague. Good answers often mentioned determinants, such as goods which were add...
— Examiner report, October/November 2022, 2281/23 Q4(a) (Cambridge)
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