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1.2.3 Price, income and cross elasticities of demand

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Question 61

Table 1: Demand Elasticities for Electric Scooters

Elasticity MeasureValue
Price Elasticity of Demand (PED)-1.40
Cross Elasticity of Demand (XED) with respect to municipal bus fares+0.65
Income Elasticity of Demand (YED)+1.80

In a certain city, the municipal authority announced an 8.0% increase in municipal bus fares.

Ceteris paribus, which one of the following is the predicted percentage change in the demand for electric scooters?

A

A 11.20%11.20\%11.20% decrease

B

A 5.20%5.20\%5.20% increase

C

A 14.40%14.40\%14.40% increase

D

A 12.31%12.31\%12.31% increase

Markscheme

1.2.3 Price, income and cross elasticities of demand Questions

  1. A Level
  2. /Economics
  3. /1.2.3 Price, income and cross elasticities of demand

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.

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