In 2023, the monthly membership price for a nationwide boutique climbing gym franchise was £80.00, and there were 15,000 active members. The price elasticity of demand for these memberships was estimated to be -1.4.
Calculate the new monthly total revenue if the membership price were reduced by 15% in 2024 to £68.00, assuming all other factors remained 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.