Within a town, bus fares are reduced by 50% and bus usage rises by 30%. Car use is affected only slightly, with a decrease of just 1%. What is the value of the cross-elasticity of demand between car travel and bus travel?
- A–0.60
- B–0.02
- C+0.02
- D+0.60
Economics 9708 · AS & A Level · Price elasticity of demand