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

Price elasticity of demand — practice question

The price of good X increases by 10%. As a consequence, demand for the substitute good Y increases by 20%. Calculate the cross-elasticity of demand for good Y with respect to the price of good X?

  • A+2
  • B+0.5
  • C–0.5
  • D–2

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