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

Price elasticity of demand — practice question

After a 10% rise in car parking charges in a city centre was introduced, the number of bus journeys into the city each day increased from 800 to 1000. What was the cross elasticity of demand for bus journeys in relation to car parking charges?

  • A–0.4
  • B+0.4
  • C+2.0
  • D+2.5

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