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1.3 Price determination in a competitive market

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Question 39

A local coffee shop is willing to supply 4000 cups of specialty coffee a week at a market price of £4 a cup. The price elasticity of supply of coffee is 1.5. If the market price falls to £3.20 a cup, the number of cups that the coffee shop will be willing to supply will be

1200

2800

3200

5200

1.3 Price determination in a competitive market Questions

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