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1.3 Price determination in a competitive market

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Question 72

The cross elasticity of demand (XED) between the price of a metro ticket and the weekly ridership of a suburban feeder bus service is +0.6.

Currently, the weekly ridership of the feeder bus service is 84,000 84,000\,84,000 passenger trips.

If the local transport authority increases the price of a metro ticket by 5%, what will be the new weekly ridership of the feeder bus service?

A

81,48081,48081,480 trips

B

86,52086,52086,520 trips

C

88,20088,20088,200 trips

D

91,00091,00091,000 trips

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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