Skip to content

Course home

A Level
Economics Edexcel A
Question bank

1.2.3 Price, income and cross elasticities of demand

Easy Medium Hard

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Question 35

A market research firm estimates that the cross elasticity of demand ( $X E D$ ) between hybrid vehicles and premium public transit passes is +1.5, while the income elasticity of demand ( $Y E D$ ) for premium public transit passes is -0.8. If the price of hybrid vehicles rises by 10% and consumer incomes simultaneously rise by 5%, what is the overall percentage change in the demand for premium public transit passes?

$+19%+19\%$

$+11%+11\%$

$−11%-11\%$

$+7%+7\%$

1.2.3 Price, income and cross elasticities of demand Questions

A Level
Economics
1.2.3 Price, income and cross elasticities of demand