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1.3 Price determination in a competitive market

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Question 5

The table below displays the cross-price elasticity of demand (XED) for the premium subscriptions of four different media streaming services with respect to the price of their primary competitor.

Streaming ServiceCross-price elasticity of demand (XED)
StreamVibe+2.15
CinePlay+0.45
ViewBox+1.10
NovaStream+0.80

All other things being equal, which service is most insulated from losing customers if its competitor lowers its subscription price?

A

StreamVibe

B

CinePlay

C

ViewBox

D

NovaStream

Markscheme

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market

256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.

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