The table below shows the average price of a peak-time commuter train ticket from Town A to City B and the daily number of passenger journeys made on the competing express coach service between the same locations. The price of an express coach ticket remains unchanged.
| Average price of a peak-time train ticket | Daily passenger journeys on the express coach service |
|---|---|
| £25.00 | 1,500 |
| £22.00 | 1,230 |
When the average price of a train ticket falls from £25.00 to £22.00, the cross elasticity of demand (XEDXEDXED) for the express coach service with respect to the price of train tickets is:
+1.5+1.5+1.5
−1.5-1.5−1.5
+0.67+0.67+0.67
−0.67-0.67−0.67
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.