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Elasticity

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Question 5

A change in the price of premium espresso machines (Good X) causes the demand for compatible coffee pods (Good Y) to increase by 15%. The cross elasticity of demand between these two complementary goods is -1.25. If the retail price of the espresso machines is now £198.00, what was their original retail price?

£176.79

£221.76

£225.00

£174.24

Elasticity Questions

  1. A Level
  2. /Economics
  3. /Elasticity