In 2023, the monthly fee for a premium agricultural drone-mapping software subscription was £80.00, and there were 2.5 million active monthly subscriptions worldwide. The price elasticity of demand for this service was estimated to be -1.2.
Calculate the new total monthly revenue for the software company if the subscription price is increased by 10% in 2024 to £88.00, assuming all other factors remain constant. You are advised to show your working.
119 exam-style questions on Edexcel A A Level Economics 1.2.3 Price, income and cross elasticities of demand. Each one has a worked solution and a mark scheme showing where the marks go.