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Price elasticity of demand: significance for firms and governments
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17 CIE IGCSE Economics questions on Price elasticity of demand: significance for firms and governments, each with instant feedback and a full examiner-style mark scheme.

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Question 1 · 1 mark · Difficulty 1/3

Which of the following products is most likely to have a price inelastic demand?

  1. A luxury sports car with several close substitutes
  2. A particular brand of cola with many competitor brands
  3. A specific brand of insulin required daily by diabetic patients
  4. A holiday package to a destination accessible by multiple tour operators
Show answer & explanation
✓ Answer: C — A specific brand of insulin required daily by diabetic patients
Award 1 mark for correct answer. Insulin is a necessity with no close substitutes; diabetic patients must purchase it regardless of price changes, making demand highly inelastic. A is incorrect because multiple substitutes increase elasticity. C is incorrect because many competitor brands provide close substitutes, increasing price elasticity. D is incorrect because multiple tour operators offer substitutes, making demand more elastic.
Question 2 · 1 mark · Difficulty 2/3

A supermarket reduces the price of its own-brand bread from $2.00 to $1.60. As a result, the quantity demanded increases from 500 loaves to 550 loaves per day. What is the price elasticity of demand for this bread?

  1. −0.50
  2. −0.25
  3. −4.00
  4. −2.00
Show answer & explanation
✓ Answer: B — −0.25
25). Award 1 mark for correct answer. PED = (% change in quantity demanded) ÷ (% change in price). % change in Qd = (50/500) × 100 = +10%. % change in P = (−0.40/2.00) × 100 = −20%. PED = 10% ÷ −20% = −0.5. Wait — recalculating: PED = (10/−20) = −0.5. ✓ Answer is B (−0.50). B is correct because the formula yields −0.5. A confuses the numerator and denominator by dividing price change by quantity change. C incorrectly inverts the percentage values. D applies an arithmetic error by using absolute values without percentages.
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CIE IGCSE Economics: Price elasticity of demand: significance for firms and governments FAQ

How many CIE IGCSE Economics questions on Price elasticity of demand: significance for firms and governments are there on Kramizo?
Kramizo currently has 17 exam-board-aligned practice questions on Price elasticity of demand: significance for firms and governments for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
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Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Price elasticity of demand: significance for firms and governments practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Price elasticity of demand: significance for firms and governments questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Price elasticity of demand: significance for firms and governments typically tested on CIE IGCSE Economics papers?
Price elasticity of demand: significance for firms and governments appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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