In 2021, the average regional express bus ticket price in the West Midlands was £12.00, and there were 6.5 million ticket sales. The price elasticity of demand was estimated to be -0.6.
Calculate the new total revenue if prices were raised by 5% in 2022 to £12.60, 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.