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1.3 Price determination in a competitive market

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Question 65

A municipal authority decides to increase its subsidy for public electric bicycle sharing schemes to encourage more residents to use active green transport. This subsidy is most likely to be successful in significantly increasing the quantity of trips taken if electric bicycle hire has a

A

demand that is elastic with respect to price.

B

demand that is inelastic with respect to price.

C

high positive income elasticity of demand.

D

negative cross elasticity of demand with respect to private car travel.

Markscheme

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market

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.

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