Table 1 shows the weekly prices and quantities of alternative plant-based milks sold in a local grocery store.
| Price of Oat Milk | Quantity of Oat Milk (cartons) | Price of Almond Milk | Quantity of Almond Milk (cartons) |
|---|---|---|---|
| £1.50 | 500 | £1.80 | 200 |
| £1.80 | 410 | £1.80 | 260 |
When the price of oat milk rises from £1.50 to £1.80, the cross elasticity of demand for almond milk with respect to the price of oat milk is:
−1.5-1.5−1.5
−0.67-0.67−0.67
+0.67+0.67+0.67
+1.5+1.5+1.5
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.