Question 1
Using the data in Table 2, calculate the price elasticity of demand for European seabass following the change in price from 2017 to 2018.
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Using the data in Table 2, calculate the price elasticity of demand for European seabass following the change in price from 2017 to 2018.
P(2018)=33522 / 5587=6.00
PED=(%ΔQd)/(%ΔP)=24.05/(−4.31)
Marking guidance:
OFR applies if the price has been calculated incorrectly.
Any valid working (correct %ΔQd or %ΔP, provided the formula is not inverted) is sufficient for [1].
=-5.58 OR 5.58
An answer of -5.58 or 5.58 without any valid working is sufficient for [2].