A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2009 · Q71 Mark
Two goods, X and Y, are complementary goods. Column 1 of the table below shows the original market situation at time period 1 and column 2 shows the situation following an increase in the price of good Y. [Table] The value of cross elasticity of demand for good X with respect to the price of good Y lies between
A-1.7 and -2.6.
B-0.8 and -1.3.
C-0.3 and -0.8.
D+0.3 and +0.6.
✓ Correct answer
C: -0.3 and -0.8.
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