1.2 How markets work

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

Question 47

In response to market competition, a micro-mobility startup decreased the hourly rental rate for its dockless electric scooters by 12.5%. Following this rate reduction, the average number of weekly rides completed by users increased by 15%.

Calculate the price elasticity of demand for these electric scooter rentals. You are advised to show your working.

[2]

1.2 How markets work

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

Question 47

In response to market competition, a micro-mobility startup decreased the hourly rental rate for its dockless electric scooters by 12.5%. Following this rate reduction, the average number of weekly rides completed by users increased by 15%.

Calculate the price elasticity of demand for these electric scooter rentals. You are advised to show your working.

[2]

1.2 How markets work

Question 47

1.2 How markets work Questions

1.2 How markets work

Question 47

1.2 How markets work Questions