An independent publisher decides to decrease the retail price of its flagship digital audiobook.
Which one of the following price elasticities of demand for the audiobook will result in the largest increase in the publisher's total revenue?
−0.45-0.45−0.45
−0.90-0.90−0.90
−2.25-2.25−2.25
−1.15-1.15−1.15
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.