1.2.3 Price, income and cross elasticities of demand

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Question 3
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In response to municipal water-use restrictions, a boutique plant nursery raised the price of its drought-tolerant agave specimens by 7.5%. Following this price change, the weekly quantity of agave specimens sold fell by 6%.

With reference to the data provided, calculate the price elasticity of demand for these agave specimens. You are advised to 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