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PED Test

The document discusses two topics: 1) the falling demand for cinema tickets in the US between 2012-2016 which may be related to taxes imposed on tickets in some states, and factors influencing demand for tickets. 2) the rising sales of smartphones in the Philippines in 2016 alongside falling equilibrium prices for smartphones, and analysis of price elasticity of demand for some smartphone brands.

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Wai Hpone
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51 views1 page

PED Test

The document discusses two topics: 1) the falling demand for cinema tickets in the US between 2012-2016 which may be related to taxes imposed on tickets in some states, and factors influencing demand for tickets. 2) the rising sales of smartphones in the Philippines in 2016 alongside falling equilibrium prices for smartphones, and analysis of price elasticity of demand for some smartphone brands.

Uploaded by

Wai Hpone
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. The number of cinema tickets purchased in the USA fell by 53 million between 2012 and 2016.

A
number of the states of USA tax cinema tickets. India also imposes an entertainment tax on
cinema tickets.
a. Describe the relationship between demand and price. (2)
b. Explain two of the main factors that influence the demand for cinema tickets. (4)
c. Analyze how a government could increase the number of cinema tickets sold. (6)

2. In 2016, the sales of smartphones increased mostly rapidly in the Philippines. The equilibrium
price of smartphones has fallen in recent years. It is thought that demand for some smartphones
is price elastic.
a. Define equilibrium price. (2)
b. Explain, using a demand and supply diagram, why demand for smartphones has increased in
many countries, but their price has fallen. (4)
c. Analyze the factors that influence price elasticity of demand. (6)
d. Discuss whether or not price elasticity of demand figures is a useful source of information
for a producer of a particular brand of smartphones. (8)

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