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1.3 Price determination in a competitive market

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Question 23

An organic cooperative market has adjusted the prices of several key products between Spring and Summer. The table below displays the price per item during each period.

ProductSpring PriceSummer Price
Organic Strawberries£4.00£3.00
Cold-Pressed Juice£5.00£6.00
Artisanal Sourdough£3.50£4.50
Fair-Trade Coffee£8.00£6.00

Other things being equal, which one of the following changes from Spring to Summer is the cooperative most likely to experience?

A

A decrease in revenue from Organic Strawberries if the price elasticity of demand is elastic

B

An increase in revenue from Cold-Pressed Juice if the price elasticity of demand is inelastic

C

An increase in revenue from Artisanal Sourdough if the price elasticity of demand is elastic

D

A decrease in revenue from Fair-Trade Coffee if the price elasticity of demand is unit elastic

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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