plumiPrice, income and cross elasticities of demand: Edexcel A‑Level Economics A questions
Every Edexcel A-Level Economics A exam question on 1.2.3 Price, income and cross elasticities of demand, 2016–2025, with its mark scheme and examiner’s report.
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Q2(b)
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Q2(a)
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All 47 questions on Price, income and cross elasticities of demand, as a list
- June 2025, Paper 1, Q2(b) (1 mark): The cross elasticity of demand for petrol cars with respect to the price of diesel cars is estimated to be +0.64. Which one of the following is the most likely
- June 2025, Paper 1, Q6(c) (12 marks): With reference to the information provided, discuss whether the price elasticity of demand for video games is elastic or inelastic. (12) Read Figure 1 and the f
- June 2025, AS Paper 1, Q2(a) (3 marks): In 2021, a bakery sold 2.5 million sausage rolls per week at the price of £1.00 each. In 2022 the price increased to £1.20. The price elasticity of demand was e
- June 2025, AS Paper 1, Q2(b) (1 mark): Which one of the following is the most appropriate description of the price elasticity of demand of −0.2? (1) A Perfectly inelastic B Relatively elastic C Relat
- June 2025, AS Paper 1, Q6(a) (5 marks): With reference to Extract B, explain why the change to meat-substitute products may result in an increase in the revenue of food companies. Refer to the concept
- June 2024, Paper 1, Q1(a) (4 marks): Explain one likely reason for the difference in the price elasticity of demand for the 18+ student bus ticket and the adult bus ticket. (4) 1 The table below sh
- June 2024, Paper 1, Q1(b) (1 mark): In 2021, the adult 7-day bus ticket was £21.90. Bus ticket prices in London in 2022 increased by 4.8%. Ceteris paribus, which one of the following is the percen
- June 2024, Paper 3, Q1(a) (5 marks): With reference to Figure 1 and Extract A, explain what is meant by ‘price inelastic demand’ (line 8). (5) Read Figures 1 and 2 and the following extracts (A to
- June 2024, AS Paper 1, Q5(a) (2 marks): In June 2023, Tesla further reduced the price of its Model 3 vehicle by £4 200 from £42 990. It has been forecast that the price cut will lead to a 15% increase
- June 2024, AS Paper 1, Q5(c) (1 mark): Which one of the following is most likely to be a determinant of price elasticity of demand for the Model 3 electric vehicle? (1) A Availability of substitute e
- June 2024, AS Paper 1, Q6(c) (4 marks): With reference to Extract A, explain the likely numerical value for the income elasticity of demand for reusable cleaning products. (4) Read Figure 1 and the fo
- June 2023, Paper 1, Q3(a) (1 mark): The likely income elasticity of demand for a luxury good is: (1) A –3.40 B –0.74 C +0.74 D +3.40 3 A luxury brownie baker is faced with falling demand as income
- June 2023, Paper 1, Q6(c) (8 marks): With reference to the information provided, examine the likely numerical value of the cross elasticity of demand between UK online streaming services. (8) Read
- June 2023, AS Paper 1, Q2(b) (1 mark): The table below shows estimates of the price elasticity of supply and price elasticity of demand for gas. Natural Gas Price elasticity of supply + 0.14 Price el
- June 2023, AS Paper 1, Q4(b) (1 mark): Which one of the following is the most likely cross price elasticity of demand for close substitutes? (1) A − 2.1 B − 0.1 C + 0.1 D + 2.1 4 During 2021 the UK e
- June 2023, AS Paper 1, Q6(a) (5 marks): With reference to Figure 1 and Extract A, explain the relationship between price elasticity of demand and total revenue. (5) Read Figures 1 and 2 and the follow
- June 2022, Paper 1, Q2(a) (2 marks): The price of sweetened drinks increases by 5%. Ceteris paribus, calculate the percentage change in the quantity demanded for sweetened drinks. You are advised t
- June 2022, Paper 1, Q2(b) (2 marks): The price of sweetened drinks increases by 5%. Ceteris paribus, calculate the percentage change in the quantity demanded for bottled water. You are advised to s
- June 2022, Paper 1, Q2(c) (1 mark): Using the data on page 4, which one of the following is most likely? (1) A decrease in the price of Sweetened drinks and sweetened drinks will have the bottled
- June 2022, Paper 1, Q6(b) (8 marks): With reference to Figure 2 and your understanding of price elasticity, examine two factors that may cause significant changes in the international price of coff
- June 2022, Paper 3, Q1(b) (8 marks): With reference to Extract B, examine whether the demand for delivered food is price inelastic and income elastic. (8) Read Figure 1 and the following extracts (
- June 2022, AS Paper 1, Q6(d) (4 marks): With reference to the information provided, calculate the new quantity demanded of bags of chips from fish and chip shops, following a 2% increase in the price
- November 2021, Paper 1, Q6(e) (15 marks): With reference to the information provided, discuss the decision by Jet2 to increase its package holiday prices. (15) Read Figures 1 and 2 and the following ext
- November 2021, Paper 3, Q1(b) (8 marks): Examine two reasons why the demand for HCWs increases during a period when consumer ‘incomes fail to keep up with inflation’ (Extract A line 8). (8)
- October 2020, Paper 1, Q7 (25 marks): The International Energy Agency has predicted that oil use by cars will peak in 2025 because of the increasing number of drivers switching to electric vehicles.
- October 2020, AS Paper 1, Q2(a) (1 mark): The income elasticity of demand for bus travel is estimated to be –1.5. This implies that: (1) A a 10% increase in fares will lead to a 15% decrease in passenge
- October 2020, AS Paper 1, Q2(b) (3 marks): Explain why a firm might try to reduce the price elasticity of demand for its products. (3)
- October 2020, AS Paper 1, Q6(a) (5 marks): Explain why ‘the price elasticity of demand for higher education is about –0.5’ may be of relevance to English universities. Refer to Extract A in your answer.
- June 2019, AS Paper 1, Q3(a) (1 mark): The most likely cross price elasticity of demand for close substitutes is: (1) A – 2.1 B – 0.1 C + 0.1 D + 2.1 In 2016 the average cinema ticket price in the U
- June 2019, AS Paper 1, Q3(b) (3 marks): Calculate the new total revenue if prices were raised by 3% in 2017 to £7.63, if everything else remained unchanged. You are advised to show your working. (3) 3
- June 2019, AS Paper 1, Q5(a) (1 mark): Calculate the percentage change in quantity demanded for Freddos between 2015 and 2017, ceteris paribus: (1) A –0.8% B –2% C –2.5% D –25% 5 2015 2017 Average we
- June 2019, AS Paper 1, Q5(b) (3 marks): Explain one reason why the income elasticity of demand is significant to the producer of Freddos. (3) 5 2015 2017 Average weekly pocket money for children £7 £8
- June 2018, Paper 1, Q6(d) (8 marks): With reference to Extract A and your own knowledge, examine two possible reasons for the change in price elasticity of demand for electricity over time. (8) Rea
- June 2018, AS Paper 1, Q2(a) (2 marks): Ceteris paribus, calculate the price elasticity of demand for the Daily Mail newspaper over this period. You are advised to show your working. (2) 2 In February
- June 2018, AS Paper 1, Q2(b) (1 mark): Which one of the following is most likely to be a determinant of price elasticity of demand for the Daily Mail newspaper? (1) A Availability of rival newspapers
- June 2018, AS Paper 1, Q4(a) (1 mark): Which one of the following is the most accurate explanation of the term ‘median household income’? (1) A The difference between the highest level of household
- June 2018, AS Paper 1, Q4(b) (3 marks): Using the data provided, explain whether bus travel is a normal good or an inferior good. (3) 4 Between 2013 and 2015, median household income in the UK increas
- June 2017, Paper 1, Q1(b) (1 mark): Research conducted in New Zealand in 2014 estimated the cross elasticity of demand for e-cigarettes to be 0.16 in response to changes in the price of tobacco. T
- June 2017, Paper 1, Q2(a) (2 marks): Assume that the change in the quantity of tea purchased was only caused by the change in the price of tea. Calculate the price elasticity of demand for tea in r
- June 2017, Paper 1, Q2(b) (2 marks): Calculate the change in total sales revenue for UK tea retailers between 2010 and 2015. You are advised to show your working. (2) 2 Between 2010 and 2015 the av
- June 2017, Paper 1, Q2(c) (1 mark): Estimates for the demand for black tea in the UK suggest that it is an inferior good. This implies it has a negative: (1) A cross elasticity of demand B income
- June 2017, AS Paper 1, Q6(c) (6 marks): Explain how changes in the price of tobacco cigarettes may affect the demand for e-cigarettes over time. (6) Read Figure 1 and the following extracts (A and B)
- June 2017, AS Paper 1, Q6(d) (4 marks): With reference to Extract A, lines 11–13, calculate the price elasticity of demand for tobacco cigarettes in high-income countries and in low-middle-income coun
- June 2017, AS Paper 1, Q6(e) (15 marks): With reference to Figure 1, assess the likely reasons for the difference in price elasticity of demand for tobacco cigarettes and e-cigarettes. (15) Read Figure
- June 2016, AS Paper 1, Q5(a) (1 mark): What is the expected percentage change in the quantity of petrol demanded if the price elasticity of demand is –0.2? (1) A –0.4% B +0.4% C –4% D +4% 5 “Since pe
- June 2016, AS Paper 1, Q5(b) (3 marks): The price elasticity of demand for petrol is –0.2. Explain the change to the total revenue of petrol stations as a result of cutting their prices. (3) 5 “Since
- June 2016, AS Paper 1, Q6(b) (10 marks): With reference to Extract A, assess the likely impact of the Help to Buy scheme on the market for rented properties in the UK. (10) Read the following Figures (
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