A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2023 · Q81 Mark
The cross elasticity of demand between bus travel and rail travel is +2. A rise in the price of bus fares caused the demand for rail travel to rise by 10%. Which change in bus fares would have caused this? [Table 8.1]
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Afrom (cents) 20 to (cents) 21
Bfrom (cents) 30 to (cents) 33
Cfrom (cents) 40 to (cents) 45
Dfrom (cents) 50 to (cents) 60
✓ Correct answer
A: from (cents) 20 to (cents) 21
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