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1.2.3 Price, income and cross elasticities of demand

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Question 50

Table 1: Cross elasticity of demand for streaming service subscriptions

Subscriber Plan	Cross elasticity of demand with respect to broadband price
Premium Plan	-0.15
Basic Plan	-0.80

In 2024, the standard monthly price of residential broadband was £38.50. Broadband provider prices are scheduled to increase by 7.5% in 2025.

Ceteris paribus, which one of the following is the percentage decrease in the demand for Premium Plan subscriptions?

$0.02$

$1.125$

$6.00$

$50.00$

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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