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1.3 Price determination in a competitive market

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Question 136

The table below shows the estimated price elasticity of demand (PED) for four food and beverage products sold by a supermarket chain.

ProductPrice Elasticity of Demand (PED)
Gourmet Chocolate-2.4
Speciality Tea-1.4
Pasteurised Milk-0.5
Table Salt-0.15

If the supermarket increases the retail price of all four products by the same percentage, which product will experience the greatest proportional increase in total consumer expenditure (total revenue)?

A

Gourmet Chocolate

B

Speciality Tea

C

Pasteurised Milk

D

Table Salt

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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