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

Price elasticity of demand — practice question

The cross elasticity of demand for products X and Y is negative. What would happen immediately if the price of product Y increases?

  • AQuantity demanded of product X will fall.
  • BSupply of product X will rise.
  • CThe cross elasticity of demand will rise.
  • DThe price of product X would rise.

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