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.
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.