A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2010 · Q81 Mark
The diagram shows the demand curve for a product. [Figure 8.1] Which statement is correct?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
ADemand is less elastic at higher prices than at lower prices.
BConsumer expenditure on the product always rises when price falls.
CPrice elasticity of demand is different at every price.
DPrice elasticity of demand equals one at every price.
✓ Correct answer
C: Price elasticity of demand is different at every price.
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