AS Paper 1, June 2016Introduction to Markets and Market Failure
AS Paper 1, June 2016, Q5(a)
What is the expected percentage change in the quantity of petrol demanded if the price elasticity of demand is –0.2?
Multiple choice1 mark
Context
“Since peaking at 132p a litre in July 2014, petrol prices have fallen by 20%”.
A–0.4%
B+0.4%
C–4%
D+4%