Table 1 shows the weekly prices and quantities of alternative transit options in a major city.
| Price of MetroPass | Weekly MetroPasses sold | Price of EcoRide rental | Weekly EcoRide trips |
|---|---|---|---|
| £20.00 | 12,000 | £1.50 | 4,000 |
| £25.00 | 10,500 | £1.50 | 4,800 |
When the price of a weekly MetroPass rises from £20.00 to £25.00, the cross elasticity of demand for EcoRide trips with respect to the price of a MetroPass is:
+1.25+1.25+1.25
+0.80+0.80+0.80
−0.80-0.80−0.80
−1.25-1.25−1.25
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.