How do I revise E2E stub topic for OCR GCSE?

Always show your working when calculating PED; even if the final answer is wrong, method marks are available

What exam tips are there for E2E stub topic? (2)

Use clear labels and diagrams to illustrate the relationship between PED and total revenue in extended responses

What exam tips are there for E2E stub topic? (3)

When discussing tax incidence, draw a supply and demand diagram and shift the supply curve to show the tax, then analyse the burden based on elasticity

What mistakes should I avoid in E2E stub topic?

Confusing elastic and inelastic: e.g., thinking a coefficient of 0.5 is elastic

What are common errors in E2E stub topic exams? (2)

Forgetting to use absolute values when interpreting PED

E2E stub topic

OCR

GCSE

This subtopic explores how responsive the quantity demanded of a good or service is to a change in its price. Students will learn to calculate and interpret price elasticity of demand (PED) and understand its significance for businesses and government policy. The concept is crucial for evaluating the impact of pricing strategies and taxation.

Objectives

Exam Tips

Pitfalls

Key Terms

Mark Points

What You Need to Demonstrate

Key skills and knowledge for this topic

Award credit for correctly applying the PED formula and arriving at a numerical answer
Expect students to clearly state whether demand is elastic, inelastic, or unitary based on the coefficient
Credit for linking changes in price to changes in total revenue using PED
In tax questions, look for correct identification of tax incidence and link to elasticity values
Award marks for using relevant examples and diagrams where appropriate

Marking Points

Key points examiners look for in your answers

Award credit for correctly applying the PED formula and arriving at a numerical answer
Expect students to clearly state whether demand is elastic, inelastic, or unitary based on the coefficient
Credit for linking changes in price to changes in total revenue using PED
In tax questions, look for correct identification of tax incidence and link to elasticity values
Award marks for using relevant examples and diagrams where appropriate

Examiner Tips

Expert advice for maximising your marks

💡Always show your working when calculating PED; even if the final answer is wrong, method marks are available
💡Use clear labels and diagrams to illustrate the relationship between PED and total revenue in extended responses
💡When discussing tax incidence, draw a supply and demand diagram and shift the supply curve to show the tax, then analyse the burden based on elasticity
💡Learn the determinants of PED (e.g., substitutes, necessity, time) and apply them to justify your reasoning in evaluation questions
💡For high marks, make a judgement about the significance of PED in the given context, considering both short-run and long-run implications

Common Mistakes

Pitfalls to avoid in your exam answers

Confusing elastic and inelastic: e.g., thinking a coefficient of 0.5 is elastic
Forgetting to use absolute values when interpreting PED
Incorrectly assuming that if demand is inelastic, a price rise will reduce total revenue
Misapplying the midpoint formula, especially when calculating percentage changes
Failing to consider the time period when determining elasticity

Study Guide Available

Comprehensive revision notes & examples

Read Study Guide

Key Terminology

Essential terms to know

Elasticity coefficient calculation

Determinants of PED

PED and total revenue

PED and taxation incidence

Perfectly inelastic and elastic extremes

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Practice questions tailored to this topic

E2E stub topic

What You Need to Demonstrate

Marking Points

Examiner Tips

Common Mistakes

Study Guide Available

Key Terminology

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Related Topics in OCR GCSE Economics

Balance of payments

Competition

Demand

Economic growth