O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2014 · Q111 Mark
Asda, a supermarket chain, noticed a regular, sharp decrease in sales in the third week of the month as people ran out of cash before their next wage payment. The supermarket offered their biggest price reductions at that time. Why might this policy increase total revenue?
Abecause consumers' demand curve shifts to the left in the third week of the month
Bbecause consumers' demand curve shifts to the right in the third week of the month
Cbecause the price elasticity of demand for Asda's products decreases in the third week of the month
Dbecause the price elasticity of demand for Asda's products increases in the third week of the month
✓ Correct answer
D: because the price elasticity of demand for Asda's products increases in the third week of the month
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