1.3 Price determination in a competitive market

Price of Good P (£)	Quantity demanded of Good P	Quantity demanded of Good Q
20	100	40
18	120	32

Refer to Table 1. When the price of Good P falls from £20 to £18, the cross elasticity of demand for Good Q with respect to the price of Good P is

$+ 2$

$- 2$

$+ 0.5$

$- 0.5$

Price of Good P (£)	Quantity demanded of Good P	Quantity demanded of Good Q
20	100	40
18	120	32

Refer to Table 1. When the price of Good P falls from £20 to £18, the cross elasticity of demand for Good Q with respect to the price of Good P is

$+ 2$

$- 2$

$+ 0.5$

$- 0.5$

1.3 Price determination in a competitive market Questions