If the price of petrol fell from £1.35 to £1.25 per litre, your expenditure on gasoline would increase if your price elasticity of demand for petrol equals…….
Select ONE answer:
- 1.1
- 0.9
- 1.0
- Total revenue would increase at all of the above elasticities.
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This is a multiple choice question is suitable for Economics KS5 classes.
The answer is 1
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