A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2015 · Q81 Mark

The cross-elasticity of demand for good X with respect to good Y is –0.5. What can be concluded from this?

AGoods X and Y are complementary goods.

BGoods X and Y are substitute goods.

CGood X is an inferior good.

DGood Y is an inferior good.

✓ Correct answer

A: Goods X and Y are complementary goods.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2015 Paper 1 Variant 2, question 8.

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