1.2.3 Price, income and cross elasticities of demand

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Question 22

Easy

In response to market competition, a micro-mobility startup decreased the hourly rental rate for its dockless electric scooters by 12.5%. Following this rate reduction, the average number of weekly rides completed by users increased by 15%.

Calculate the price elasticity of demand for these electric scooter rentals. You are advised to show your working.

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1.2.3 Price, income and cross elasticities of demand

Question 22

1.2.3 Price, income and cross elasticities of demand Questions

1.2.3 Price, income and cross elasticities of demand

Question 22

1.2.3 Price, income and cross elasticities of demand Questions