The cross elasticity of demand (XED) for electric vehicles with respect to the price of residential electricity is estimated to be -1.5.
This implies that:
electric vehicles and residential electricity are substitute goods
a 10%10\%10% increase in the price of residential electricity will lead to a 15%15\%15% decrease in the demand for electric vehicles
electric vehicles are an inferior good because the coefficient is negative
a 15%15\%15% increase in consumer incomes will lead to a 10%10\%10% decrease in the demand for electric vehicles
119 exam-style questions on Edexcel A A Level Economics 1.2.3 Price, income and cross elasticities of demand. Each one has a worked solution and a mark scheme showing where the marks go.