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

Price elasticity of demand — practice question

What conclusion can be drawn about a good when its cross-price elasticity of demand is positive?

  • AIts price will be sensitive to changes in prices of close substitutes.
  • BIts price will be sensitive to changes in quantity demanded of close substitutes.
  • CThe quantity demanded for this good will be sensitive to changes in prices of close substitutes.
  • DThe quantity demanded for this good will be sensitive to changes in quantity demanded of close substitutes.

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