Economics (AS & A Level) · Feb / March 2025 · Paper 12 · Question 8
9708Price elasticity, income elasticity and cross elasticity of demand
The diagram shows the impact on equilibrium due to an increase in the costs of production. The original price is $72. The price elasticity of demand is –2.0. What is the new equilibrium price, P2?
- A$81.00
- B$84.00
- C$92.00
- D$108.00
As printed in the paper
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Correct answer: A. $81.00
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