1.3 Price determination in a competitive market

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%.

[4]

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%.

[4]

1.3 Price determination in a competitive market Questions