CB2 practice questions

Original questions in the style of the paper, sorted by syllabus area, each with hints, a worked or model solution and a marking schedule.

The paper	One online written exam, answers typed in Word
Time	3 hours 20 minutes, including reading time

Past papers

Past papers and examiners' reports moved to the members' learning site on 15 October 2025. The questions here are original and add to them rather than copy them.

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Elasticity of demand for travel insurance

Markets · Straightforward · 8 marks

Wayfarer Cover sells single-trip travel insurance online. When it cut its price from £40 to £32 a policy, monthly sales rose from 5,000 to 6,000 policies. Assume nothing else affecting demand changed.

(i)
Calculate the price elasticity of demand using the original price and quantity as the base, to 2 decimal places.
2 marks
Your answer
(ii)
Calculate the price elasticity of demand using average (midpoint) values, to 2 decimal places.
2 marks
Your answer
(iii)
Calculate the change in Wayfarer's monthly premium income, in £.
2 marks
Your answer
(iv)
Explain why the two methods give different answers, and comment on which result is consistent with the change in premium income.
2 marks

Next step

Take the free diagnostic Elasticity by the original and average methods

The CB2 syllabus for 2027

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Are the questions like the real paper?

They follow its style: a scenario, parts of varying marks, short calculations with explanation and comment, and a marking schedule for each part.