Economics 9708 · AS & A Level · Cross elasticity of demand

Cross elasticity of demand — practice question

The table gives the highest amount that three students would each be prepared to pay for a taxi to take them home from a nightclub. Assume that they split the taxi fare as set out in the table below. Which shows how much each of them should pay so that they all gain the same consumer surplus?

  • AJane $2.00; Sara $4.00; Yasmin $6.00
  • BJane $4.00; Sara $4.00; Yasmin $4.00
  • CJane $5.00; Sara $4.00; Yasmin $3.00
  • DJane $6.00; Sara $4.00; Yasmin $2.00

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