Skip to content

Course home

Sign up

1.2.3 Price, income and cross elasticities of demand

EasyMediumHard
1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950515253545556575859606162
Question 10

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?

A

−18%-18\%−18%

B

+18%+18\%+18%

C

−12.5%-12.5\%−12.5%

D

+12.5%+12.5\%+12.5%

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.

Question bank