Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 8
9708Price elasticity, income elasticity and cross elasticity of demand
The cross elasticity of demand between bus travel and rail travel is +2. A rise in the price of bus fares caused the demand for rail travel to rise by 10%. Which change in bus fares would have caused this?
- A20 to 21
- B30 to 33
- C40 to 45
- D50 to 60
As printed in the paper
Show the answer
Correct answer: A. 20 to 21
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.