Price elasticity of demand (PED) — Paper 1 · IGCSE Economics (9-1) 0987

11 People’s income decreases. How is the proportion spent on food and leisure likely to change? food leisure A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0987/11 May/June 2020

7 The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread? A –0.4 B –0.8 C –1.25 D –2.0

1 marks

Answer: B

This question in 0987/12 May/June 2020

8 The table shows the quantity demanded at different prices. quantity price $ demanded 6 3 5 4 4 5 3 7 2 9 For which fall in price is the demand price-inelastic? A from $6 to $5 B from $5 to $4 C from $4 to $3 D from $3 to $2

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2021

7 In the diagram, which demand curve has perfectly elastic demand? A B C price D O quantity

1 marks

Answer: D

This question in 0987/12 May/June 2022

7 What is the definition of price elasticity of demand? A the responsiveness of quantity demanded of a product to a change in income of consumers B the responsiveness of quantity demanded of a product to a change in the price of a complementary product C the responsiveness of quantity demanded of a product to a change in the price of that product D the responsiveness of quantity demanded of a product to a change in the price of a substitute product

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2022

7 What is the most likely cause of a product having a price elasticity of demand greater than one? A The product has a close substitute. B The product is a habit-forming good. C The product is a necessity. D The product requires only a small proportion of consumer income.

1 marks

Answer: A

This question in 0987/11 May/June 2023

21 A government has introduced a tax on a necessity. Producers have passed on a large proportion of this tax to consumers in the form of higher prices. Which row is correct? price elasticity type of tax of demand A direct price elastic B direct price inelastic C indirect price elastic D indirect price inelastic

1 marks

Answer: D

This question in 0987/11 May/June 2023

6 Which price elasticity of demand (PED) would cause an increase in total revenue if the price of the good increased? A perfectly elastic B relatively elastic C relatively inelastic D unitary elastic

1 marks

Answer: C

This question in 0987/12 May/June 2023

7 What is the value of the price elasticity of demand (PED) for a product if total revenue remains the same when the price is reduced? A zero B between 0 and 1 C greater than 1 D 1

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2023

8 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? A It would decrease by 2.9%. B It would decrease by 8.5%. C It would increase by 2.9%. D It would increase by 8.5%.

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2023

8 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? A greater than 1 B unitary C less than 1 D zero

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2024

7 The table shows the quantity demanded at different prices. quantity price $ demanded 6 3 5 4 4 5 3 7 2 9 For which fall in price is the demand price-inelastic? A from $6 to $5 B from $5 to $4 C from $4 to $3 D from $3 to $2

1 marks

Answer: D

This question in 0987/11 May/June 2025