Table 1 shows the weekly market demand for and supply of artisanal oat milk at a range of prices between £4.00 and £8.00 per litre.
Following a successful social media endorsement by a prominent health influencer, the demand for artisanal oat milk increases by 50% at each of the prices shown in Table 1.
| Price per litre (£) | Quantity supplied (000s of litres) | Quantity demanded (000s of litres) |
|---|---|---|
| 4.00 | 110 | 180 |
| 5.00 | 150 | 150 |
| 6.00 | 165 | 135 |
| 7.00 | 180 | 120 |
| 8.00 | 190 | 100 |
After the rise in demand:
at a price of £4.00, excess demand increases by 150%.
at a price of £8.00, excess supply falls by 50%.
the equilibrium market price increases by 40%.
the price elasticity of demand increases by 50% at each price.
