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1.2.3 Price, income and cross elasticities of demand

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Question 44

An electronics manufacturer produces a virtual reality (VR) headset that requires a subscription to their proprietary online gaming platform to function. The headset cannot run any third-party software, and the platform cannot be accessed without the headset.

Which of the following is the most likely cross-price elasticity of demand (XEDXEDXED) for the proprietary platform subscription with respect to the price of the VR headset?

+1.5+1.5+1.5

+0.2+0.2+0.2

−1.5-1.5−1.5

−0.2-0.2−0.2

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