The cross elasticity of demand for Good X is -0.25 with respect to the price of Good Y. If the price of Good Y falls by 20%, the demand for Good X will:
fall by 5%5\%5%.
fall by 80%80\%80%.
rise by 5%5\%5%.
rise by 80%80\%80%.
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.