A veterinary practice has reviewed how pet owners responded to earlier changes in its fees. It calculated a price elasticity of demand of -0.6 for routine pet health checks and -1.5 for pet grooming appointments. The practice is now considering reducing the fee for each service by 8%.
Evaluate how useful the two price elasticity of demand figures are when deciding whether this plan would benefit the veterinary practice and pet owners.
82 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.