A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2020 · Q81 Mark

Following the introduction of a 10% increase in charges for car parking in a city centre, the demand for bus journeys per day into the city rose from 800 to 1000. What was the cross elasticity of demand for bus journeys with respect to car parking charges?

A-0.4

B+0.4

C+2.0

D+2.5

✓ Correct answer

D: +2.5

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2020 Paper 1 Variant 2, question 8.

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