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1.2.3 Price, income and cross elasticities of demand

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Question 60

In a bid to cover rising raw material costs, the eco-gardening supplier BioSoil raised the price of its signature 10kg premium compost bag from £12.50 to £14.50. Following this price increase, monthly unit sales of the compost bag dropped by 24%.

Ceteris paribus, calculate the price elasticity of demand (PED) for BioSoil premium compost over this period. Show your working.

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1.2.3 Price, income and cross elasticities of demand Questions

  1. A Level
  2. /Economics
  3. /1.2.3 Price, income and cross elasticities of demand

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.

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