Economics Multiple Choice Question – 4 July 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A negative value for the cross elasticity of demand between two goods indicates

Select ONE answer:

  1. that one of the goods is normal and the other is inferior.
  2. that the goods are substitutes.
  3. that the goods are complements.
  4. that each good is price inelastic.

Explain how changes in the prices of substitutes and complementary goods may cause a shift in the demand curve:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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