A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2016 · Q71 Mark
The table gives estimates of the price elasticities and cross elasticities of demand for bus and rail travel. [Figure X.X] What would be the change in the volume of rail travel resulting from a 1% increase in bus fares?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Aan increase of 0.16%
Ban increase of 0.43%
Creduction of 0.13%
Dreduction of 0.37%
✓ Correct answer
A: an increase of 0.16%
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