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

Price elasticity of demand — practice question

The cross elasticity of demand between two products, X and Y, is negative. What would be the immediate consequence of an increase in the price of product Y?

  • 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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