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

Price elasticity of demand — practice question

Goods X and Y have a positive cross-elasticity of demand, and their supply curves slope upwards. What effect will a fall in the price of good Y have?

  • AThe demand for good X will increase.
  • BThe demand for good Y will decrease.
  • CThe price of good X will decrease.
  • DThe quantity of good X supplied will increase.

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