Due to a reduction in raw material costs, the market price of premium organic oat milk falls by 12%. If the price elasticity of supply (PES) for this brand of oat milk is +1.6, the quantity supplied of organic oat milk will:
decrease by 7.5%7.5\%7.5%
decrease by 19.2%19.2\%19.2%
increase by 19.2%19.2\%19.2%
decrease by 13.6%13.6\%13.6%
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.