The marketing department of an independent provider of high-speed fiber broadband services has calculated that its service has a price elasticity of demand (PED) equal to -0.6. This suggests that if the provider raises the monthly subscription fee, then:
the quantity demanded will fall by 60%60\%60%.
total consumer spending on the service will decline.
total consumer spending on the service will increase.
the quantity demanded will rise by 60%60\%60%.
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.