Using the data below, which one of the following is most likely?
| Elasticity measure | Value |
|---|---|
| Price elasticity of demand for e-readers | -0.65 |
| Cross price elasticity of demand for e-books in response to a price change in e-readers | -0.78 |
A decrease in the price of e-readers will decrease total revenue; e-readers and e-books are complements.
A decrease in the price of e-readers will decrease total revenue; e-readers and e-books are substitutes.
A decrease in the price of e-readers will increase total revenue; e-readers and e-books are complements.
A decrease in the price of e-readers will increase total revenue; e-readers and e-books are substitutes.
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.