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 is +2. If bus fares increase, the demand for rail travel rises by 10%. What change in bus fares has caused this?

  • 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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