Table 1 shows the price of a can of Sparkle Cola and the number of cans of Bolt Cola purchased in a local supermarket in one week. The price of a can of Bolt Cola remains unchanged.
Table 1
| Price of a can of Sparkle Cola | Number of cans of Bolt Cola purchased per week |
|---|---|
| £1.20 | 4,000 |
| £1.32 | 5,600 |
When the price of a can of Sparkle Cola rises from £1.20 to £1.32, the cross elasticity of demand for Bolt Cola with respect to the price of Sparkle Cola is
−4.0-4.0−4.0
−0.25-0.25−0.25
+0.25+0.25+0.25
+4.0+4.0+4.0
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.