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

Cross elasticity of demand — practice question

The table lists the highest amount a consumer would be prepared to pay for each extra can of fruit juice: first $14, second $10, third $6, fourth $4, fifth $3. The price is $4 and, after buying three cans, the consumer chooses to purchase a fourth. How will buying the fourth can change his consumer surplus?

  • AIt leaves it unchanged.
  • BIt lowers it by $2.
  • CIt raises it by $4.
  • DIt raises it by $34.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI