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1.3 Price determination in a competitive market

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Question 90

Extract C (lines 8–9) states that ‘due to increased constellation deployments, the monthly leasing tariff of commercial satellite bandwidth is projected to fall from £8,000 to £6,800 per Gbps by the end of the year.’

Calculate the price elasticity of demand for commercial satellite bandwidth if this fall in price leads to an increase in the quantity demanded of 18%.

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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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