Day: September 17, 2021

The cross elasticity of demand between two products, X and Y, is negative.

What would be the immediate effect of a rise in the price of product Y?

Select ONE answer:

1. Quantity demanded of product X will fall.
2. Supply of product X will rise.
3. The cross elasticity of demand will rise.
4. The price of product X will rise.

Show your workings to arrive at your answer, and explain and justify your reasons:

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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