O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2019 · Q71 Mark

A mobile (cell) phone operator increases the price of making calls on its network. After the price increase, the revenue of the mobile phone operator falls by 10%. What is the price elasticity of demand (PED) for the mobile operator's service?

Aelastic

Binelastic

Cperfectly elastic

Dunit elastic

✓ Correct answer

A: elastic

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2019 Paper 1 Variant 2, question 7.

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