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

Cross elasticity of demand — practice question

The table sets out the highest price a consumer is prepared to pay for each successive can of fruit juice. A can costs $4, and after buying three cans, the consumer chooses to purchase a fourth. What effect does buying the fourth can have on 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