According to Extract C (lines 12–13), the price of a standard multi-pack of high-energy drinks had to rise from £4.00 to £5.20 in convenience stores, as a result of a newly introduced sugar levy.
If the demand for high-energy drinks fell by 14.1% in the first year as a result of the price change, calculate the price elasticity of demand for these energy drinks, to two decimal places.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.