A-level Paper 1, June 2017Markets and Business Behaviour
A-level Paper 1, June 2017, Q2(a)
Assume that the change in the quantity of tea purchased was only caused by the change in the price of tea. Calculate the price elasticity of demand for tea in response to the rise in its price. You are advised to show your working.
Short answerCalculate2 marks
Context
Between 2010 and 2015 the average price of tea in the UK increased from £7.20 per kilo to £8.48 per kilo. Over the same period the quantity of tea purchased fell from 97 million kilos to 76 million kilos.
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