Espresso machines and compatible coffee pods are complementary goods with an estimated cross elasticity of demand of -4. Currently, 1,200,000 coffee pods are sold in the UK each week.
With reference to the information provided, calculate the new quantity demanded of coffee pods per week, following a 3% increase in the price of espresso machines. You are advised to show your working.
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.