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1.2.3 Price, income and cross elasticities of demand

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Question 41

An economic study on the kitchen appliance market in France estimated the cross elasticity of demand for coffee capsules with respect to the price of capsule espresso machines to be -1.5.

This implies that a 12% decrease in the price of capsule espresso machines will cause the percentage change in demand for coffee capsules to be:

$−18.0%-18.0\%$

$+8.0%+8.0\%$

$+18.0%+18.0\%$

$−8.0%-8.0\%$

Markscheme

1.2.3 Price, income and cross elasticities of demand Questions

A Level
Economics
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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