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1.3 Price determination in a competitive market

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Question 6

A boutique fitness studio determines that the price elasticity of demand for its monthly membership passes is -1.5. If the studio decides to increase its monthly membership price by 8%, the total revenue generated from these passes will:

A

rise by 4.96%4.96\%4.96%.

B

fall by 4.00%4.00\%4.00%.

C

fall by 4.96%4.96\%4.96%.

D

fall by 12.00%12.00\%12.00%.

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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