The price of good X increases by 10%. Consequently, the demand for the complementary good Y changes by 20%. What is the cross elasticity of demand for good Y with respect to good X?
- A+2
- B+0.5
- C–0.5
- D–2
Economics 9708 · AS & A Level · Price elasticity of demand
The price of good X increases by 10%. Consequently, the demand for the complementary good Y changes by 20%. What is the cross elasticity of demand for good Y with respect to good X?