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

Price elasticity of demand — practice question

The table presents estimates of the price elasticities and cross elasticities of demand for bus and rail travel. What would be the change in the volume of rail travel following a 1 % rise in bus fares?

  • Aan increase of 0.16 %
  • Ban increase of 0.43 %
  • Ca reduction of 0.13 %
  • Da reduction of 0.37 %

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