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

Price elasticity of demand — practice question

When the price of cars falls, demand for petrol increases by 20%. The cross-elasticity of demand between cars and petrol is –2. What change in car prices has led to this result?

  • Afrom $6000 to $5000
  • Bfrom $5500 to $4500
  • Cfrom $5000 to $4500
  • Dfrom $5000 to $4000

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