1.2 How markets work

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Question 32

Following a breakthrough in photovoltaic manufacturing, the average retail price of residential solar panels decreases by 15%. If the cross-price elasticity of demand (XED) between solar panels and residential storage batteries is -1.2, what is the expected percentage change in the quantity of storage batteries demanded?

$−18%-18\%$

$+18%+18\%$

$−12.5%-12.5\%$

$+12.5%+12.5\%$

1.2 How markets work

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Question 32

Following a breakthrough in photovoltaic manufacturing, the average retail price of residential solar panels decreases by 15%. If the cross-price elasticity of demand (XED) between solar panels and residential storage batteries is -1.2, what is the expected percentage change in the quantity of storage batteries demanded?

$−18%-18\%$

$+18%+18\%$

$−12.5%-12.5\%$

$+12.5%+12.5\%$

1.2 How markets work

Question 32

1.2 How markets work Questions

1.2 How markets work

Question 32

1.2 How markets work Questions