◈ Oracle PrepSign Up Free
A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2018 · Q71 Mark

Two goods X and Y have a positive cross-elasticity of demand and upward-sloping supply curves. What will be the effect of a reduction in the price of good Y?

AThe demand for good X will increase.
BThe demand for good Y will decrease.
CThe price of good X will decrease.
DThe quantity of good X supplied will increase.

✓ Correct answer

C: The price of good X will decrease.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2018 Paper 1 Variant 2, question 7.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

The price system and the microeconomyFeb/Mar 20171m

Which is an internal economy of scale?

The price system and the microeconomyFeb/Mar 20171m

When a firm doubles its variable inputs, its fixed inputs are unchanged and output less than doubles. What does this …

The price system and the microeconomyFeb/Mar 20171m

Which practices would be classified as price discrimination?

Government microeconomic interventionFeb/Mar 20171m

Which circumstance is not likely to represent a strong case for an industry to be nationalised?

The macroeconomyFeb/Mar 20171m

How does a rise in the price of factors of production affect the aggregate supply (AS) curve?

The macroeconomyFeb/Mar 20171m

Relative weights are used in calculating the index of retail prices to reflect the different

← Browse all past-paper questions

© 2026 Oracle Prep