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

Price elasticity of demand — practice question

The cross elasticity of demand between bus travel and rail travel has a value of +2. If an increase in bus fares led to demand for rail travel rising by 10%, what change in bus fares would have brought this about?

  • Afrom 20 cents to 21 cents
  • Bfrom 30 cents to 33 cents
  • Cfrom 40 cents to 45 cents
  • Dfrom 50 cents to 60 cents

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