A-level Paper 1, June 2017Markets and Business Behaviour
A-level Paper 1, June 2017, Q1(b)
Research conducted in New Zealand in 2014 estimated the cross elasticity of demand for e-cigarettes to be 0.16 in response to changes in the price of tobacco. This implies that a 5% increase in the price of tobacco will cause the percentage change in demand for e-cigarettes to be:
Multiple choice1 mark
Context
The table shows market data for e-cigarette kits. The original equilibrium price is £23. Quantity Quantity New quantity New quantity Price demanded per supplied per demanded per supplied per £ month (000) month (000) month (000) month (000)
A-31.25
B-0.16
C0.8
D31.25
Learn this question
Open a video explanation without leaving the question.