Between 2018 and 2023, the average subscription price of an enterprise cloud-analytics workspace in the UK increased from £80.00 per month to £92.00 per month. Over the same period, the number of active corporate workspaces fell from 40,000 to 31,600.
Assume that the change in the number of active corporate workspaces was only caused by the change in the subscription price. Calculate the price elasticity of demand for these workspaces in response to the rise in price. 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.