Economics Multiple Choice Question – 29 May 2022

The table shows the price elasticity of demand for four goods and services:

• motor cycles 1.6
• telephone calls 1.0
• football tickets 0.3
• light bulbs 0.0

If the price of each item increased by 1%, for which of these items would the total expenditure increase?

Select ONE answer:

1. football tickets only
2. motor cycles only
3. football tickets and light bulbs
4. motor cycles and telephone calls

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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