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1.3 Price determination in a competitive market

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Question 27

The diagram below shows the market demand (DDD) curve and two supply (S1 S_1\,S1​ and S2S_2S2​) curves for a premium brand of organic blueberries, sold in 250g packs.

Organic blueberry market diagram

Following the imposition of an import tariff, consumption falls from 600,000 packs per week to 540,000 packs per week.

If the price elasticity of demand for this brand of organic blueberries is -0.8, the price must have increased by:

12.5p

16p

20p

32p

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market