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WalesBusinessQuick questions
Business Analysis and Strategy (A2 Unit 3)
Quick questions on Data and market analysis (including elasticity) - WJEC A-Level Business
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is income elasticity of demand?Show answer
Income elasticity of demand (YED) measures how responsive demand is to a change in consumers' income: YED = % change in quantity demanded / % change in income. Its sign matters:
What is q1?Show answer
Define the term price elasticity of demand. [2 marks]
What is q2?Show answer
A product's price falls by 5% and demand rises by 15%. Calculate the PED and state whether demand is elastic or inelastic. [3 marks]
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