An airport luggage-storage business is considering reducing the fee for its lockers. Its forecast is shown below.
| Current monthly total revenue | Proposed change in locker fee | PED |
|---|---|---|
| £50,000 | 10% decrease | -1.2 |
The business assumes that quantity demanded will respond exactly as indicated by the PED coefficient.
What will its monthly total revenue be after the fee is reduced?
£56,000
£45,000
£48,750
£50,400
236 exam-style questions on AQA GCSE Economics 1.3 How prices are determined, covering 1.3.1a Demand and the factors that influence it, 1.3.1b The demand curve, 1.3.2a Supply and the factors that influence it, 1.3.2b The supply curve, 1.3.3a Determining equilibrium price, 1.3.3b Applying diagrams and showing revenue, 1.3.4a Complements and substitutes, 1.3.4b Effects of changes on related markets, 1.3.5a Price elasticity of demand, 1.3.5b Factors affecting price elasticity of demand, 1.3.5c Measuring PED and its implications, 1.3.6a Price elasticity of supply, 1.3.6b Factors affecting price elasticity of supply, and 1.3.6c Measuring PES and its implications. Each one has a worked solution and a mark scheme showing where the marks go.