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1.3 Price determination in a competitive market

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Question 84

The price of good Y, a substitute for good X, rises from £4 to £6. As a result, the quantity demanded for good X rises from 20 million units to 25 million units per month.

What is the value of the cross elasticity of demand for good X with respect to good Y?

A

+0.5+0.5+0.5

B

−0.5-0.5−0.5

C

+2.0+2.0+2.0

D

−2.0-2.0−2.0

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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