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

Price elasticity of demand — practice question

Goods X and Y are complements, and the cross-elasticity of demand is –0.8. At a price of $10 for good X, the quantity of good Y demanded was 2000 units per week. Following a change in the price of good X, demand for good Y rises to 2800 units per week. What is the new price of good X?

  • A$5.00
  • B$6.80
  • C$13.20
  • D$15.00

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