0455
Price Elasticity of Demand (PED)
Allocation of Resources · 4 question types
Exam Frequency Analysis
Past paper frequency (2018 to 2024)
This topic accounts for approximately 15% of your exam marks.
increasing
Very High
Increasing15%
PED definition, formula, calculation, and revenue application appear regularly; trending upward since 2021.
A typical 4-mark "calculate PED" question rewards a clear three-step method plus a one-line interpretation.
Step 1. Calculate the percentage change in quantity demanded.
Step 2. Calculate the percentage change in price.
Step 3. Divide: PED = %ΔQd ÷ %ΔP.
Step 4. Interpret the result: say whether demand is elastic (
|PED| > 1) or inelastic (|PED| < 1), and what that means for total revenue.