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Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 7

9708Price elasticity, income elasticity and cross elasticity of demand

What can be measured by cross-elasticity of demand?

  1. Aa change in real income as a result of a change in the price of consumer goods
  2. Ba change in the demand for a good in response to a change in the price of a complement
  3. Ca change in the price of a good in response to a change in the demand for a substitute
  4. Da change in the price of a good when the demand for it changes

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Correct answer: B. a change in the demand for a good in response to a change in the price of a complement

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