A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q61 Mark
The diagram shows the demand curve for a product. [Figure showing a downward sloping straight-line demand curve labelled D, with price on the y-axis and quantity on the x-axis.] 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.
AConsumer expenditure on the product always rises when price falls.
BDemand is less elastic at higher prices than at lower prices.
CPrice elasticity of demand differs at every price.
DPrice elasticity of demand equals one at every price.
✓ Correct answer
C: Price elasticity of demand differs at every price.
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