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1.3 Price determination in a competitive market

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Question 9

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?

StreamVibe

CinePlay

ViewBox

NovaStream

1.3 Price determination in a competitive market Questions

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