(a)[8]
Explain, with examples, what the size of a good’s cross-elasticity of demand shows about its substitutes and complements.
(b)[12]
Discuss whether the demand for mobile phones (cell phones) is likely to be price-elastic or price-inelastic.
Economics 9708 · AS & A Level · Price elasticity of demand
Price elasticity of demand — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge of XED as a measure of how demand for one product responds to a change in the price of another; the formula can be stated; examples (e.g. chicken and turkey, cars and petrol)” …
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