Extract C (lines 12–13) states that ‘the price of cobalt is projected to fall from around $80,000 to $64,000 per tonne by the end of the year.’
Calculate the price elasticity of demand for cobalt if this fall in price leads to an increase in the quantity demanded of 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.