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1.2.3 Price, income and cross elasticities of demand

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Question 8

Market for Meat Alternatives in Sweden

Using the data below, which one of the following is most likely?

Price elasticity of demand for plant-based meat alternatives-1.65
Cross price elasticity of demand for conventional beef in response to a price change in plant-based meat alternatives+0.42
A

A decrease in the price of plant-based meat alternatives will decrease revenue; plant-based meat alternatives and conventional beef are Complements

B

A decrease in the price of plant-based meat alternatives will decrease revenue; plant-based meat alternatives and conventional beef are Substitutes

C

A decrease in the price of plant-based meat alternatives will increase revenue; plant-based meat alternatives and conventional beef are Complements

D

A decrease in the price of plant-based meat alternatives will increase revenue; plant-based meat alternatives and conventional beef are Substitutes

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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