Which of the following developments is most likely to cause the price elasticity of demand (PED) for a specific manufacturer's luxury electric SUV to become more price elastic?
A reduction in the corporate tax rate levied on automotive manufacturers.
The launch of multiple high-quality, similarly-priced electric SUVs by rival brands.
A sustained rise in the average real disposable income of the target customer demographic.
A nationwide marketing campaign by the manufacturer that successfully establishes strong brand loyalty.
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.