Key term
CCEA AS-Level Business 3210
Enterprise and Entrepreneurship
The Central Purpose of Business Activity
Forms of Business Ownership
Stakeholder Groups
Markets and Market Forces
Quality Management
Topic overviewWhat is quality?Total quality management, quality assurance and quality control definedThe advantages and disadvantages of TQMThe advantages and disadvantages of quality assurance and quality controlISO 9000 certification and the quality policyQuality control and quality assurance reviewedTQM, control and assurance comparedThe approaches to quality, and the case for and against TQMQuality control and quality assurance weighedISO 9000 certification, and how quality is measuredQuality as a dimension of competitiveness
Productivity and Investment
Organisational Design
Topic overviewHierarchy, span of control, chain of command and delegationCentralised, decentralised, tall, flat and matrix structuresCentralisation versus decentralisation, delayering, and the effects of designCentralisation and decentralisation weighedTall and flat structures weighedOutsourcingCentralisation, structure and outsourcing
Investing in People
Topic overviewSuccession planning, skills audits and the factors behind people investmentThe benefits and drawbacks of investing in peopleMethods of recruitment and selectionTraining and appraisal methodsOnline recruitment and selectionOnline training and appraisalInduction training: content, benefits and drawbacksOn-the-job training: methods, advantages and drawbacksOff-the-job training: methods, advantages and drawbacksContinuing professional developmentChoosing a training methodInternal and external methods of recruitmentInternal versus external recruitment weighedThe stages of selection, and the methods usedPsychometric testing: what it measures and what it missesPsychometric testingThe purpose of appraisal, and its benefits and drawbacksTechnology in the appraisal processOnline recruitment and selection technologyOnline training and appraisal technologyThe benefits and drawbacks of online HR processes
Motivation
Topic overviewTaylor's scientific management and Maslow's hierarchyHerzberg's two-factor theory, and the limits of each theoryTaylor and Maslow reviewedHerzberg's hygiene factors and motivators in detailMonetary and non-monetary methods of motivationLeadership styles, and choosing a method of motivationThe monetary methods of paymentThe monetary methods weighed, and calculating commissionJob design, empowerment, team working and flexible workingRecognition and development, and how non-monetary methods link to theory
Principles of Management and Leadership
Market Size, Share and Growth
The Degree of Competition in a Market
Market Research
The Marketing Mix
Elasticity of Demand
The Product Life Cycle
Market Planning and Strategy
E-Business and E-Commerce
Sources of Finance
Break-Even Analysis
Cash Flow
Cash Flow Forecasts
Budgeting
Elasticity of Demand
- 3 subtopics
- 9 things to know
- Unit AS 2
What Elasticity of Demand covers
Elasticity of demand is examined in Unit AS 2, Growing the Business. It covers price and income elasticity defined, and the effect on revenue, calculating and interpreting price elasticity, and what determines it and income elasticity, cross elasticity, and the limits of elasticity values.
Where it is assessed
Unit AS 2
Growing the Business, written examination, 20% of A level.
Check the CCEA specification ↗The 3 subtopics
Each one has its own page. CCEA AS Business students sit this topic in the first year.
- Price and income elasticity defined, and the effect on revenuePrice elasticity of demand and income elasticity of demand.Open →
- Calculating and interpreting price elasticity, and what determines itFormula for price elasticity of demand and price elasticity of demand of zero.Open →
- Income elasticity, cross elasticity, and the limits of elasticity valuesFormula for income elasticity of demand and formula for cross elasticity of demand.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
How is income elasticity found, and what do +2.5, minus 0.8 and a value between zero and one each tell a business?
Key term
What do price elasticity and income elasticity of demand each measure, and what does the second one tell a business?
Key term
Define price elasticity of demand.
Numbers
State the formula for price elasticity of demand.
Numbers
State the formula for income elasticity of demand.
Key term
Define income elasticity of demand.
Key term
Why is the value of price elasticity of demand normally negative?
Numbers
Consumer incomes rise by 4% and demand for a product rises by 10%. Calculate the income elasticity of demand and classify the product.
Take Elasticity of Demand further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Price elasticity of demand vs Income elasticity of demand
Price elasticity of demand: how far quantity responds to a change in the good’s own price. Income elasticity of demand: how far quantity responds to a change in consumer incomes.
Questions from this topic
Each one with the model answer underneath.
- 1
Define price elasticity of demand.
Model answer
A measure of the responsiveness of quantity demanded to a change in price.
- 2
What does price elasticity of demand indicate about consumer behaviour?
Model answer
It shows how sensitive consumers are to price changes when deciding how much of a product to buy.
- 3
Define income elasticity of demand.
Model answer
A measure of the responsiveness of quantity demanded to a change in consumer income.
- 4
What does income elasticity of demand tell a business?
Model answer
How demand for its product will change as consumer incomes rise or fall.
- 5
Explain why a price decrease leads to higher total revenue when demand is price elastic.
Model answer
Because the percentage increase in quantity demanded exceeds the percentage decrease in price, so overall revenue rises.
- 6
If demand for a product is price elastic, what pricing decision would increase total revenue?
Model answer
Decreasing the price.
What is inside Levo
Six ways to work the same material.
Elasticity of Demand revision questions
- Is Elasticity of Demand examined at AS in CCEA Business?
- Yes. It sits in Unit AS 2, which you take in the first year, so it is on the AS paper as well as counting towards the full A level.
- What does Elasticity of Demand cover in CCEA AS-Level Business?
- 3 subtopics: price and income elasticity defined, and the effect on revenue, calculating and interpreting price elasticity, and what determines it and income elasticity, cross elasticity, and the limits of elasticity values. Each one has its own page with questions and model answers.
- How is Elasticity of Demand organised?
- By the CCEA 3210 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Elasticity of Demand, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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