Cross Price Elasticity of Demand (Grade 11 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does cross price elasticity of demand measure?
What does cross price elasticity of demand measure?
How demand for one good responds to another's price change
What is the formula for cross price elasticity of demand?
What is the formula for cross price elasticity of demand?
\frac{\text{% change in qty of A}}{\text{% change in price of B}}
Fuel price rises 10%; fuel-inefficient car demand falls 20%. What is the cross price elasticity?
Fuel price rises 10%; fuel-inefficient car demand falls 20%. What is the cross price elasticity?
What does a negative cross price elasticity indicate?
What does a negative cross price elasticity indicate?
The products are complements
What does a positive cross price elasticity indicate?
What does a positive cross price elasticity indicate?
The products are substitutes
Which relationship type matches negative cross elasticity?
Which relationship type matches negative cross elasticity?
Complements (used together)
If Coca-Cola's price rises and Pepsi demand increases, what is their relationship?
If Coca-Cola's price rises and Pepsi demand increases, what is their relationship?
Substitutes
If a product's price decreases, what happens to its complement's demand curve?
If a product's price decreases, what happens to its complement's demand curve?
Shifts to the right (increases)
If a product's price increases, what happens to its substitute's demand curve?
If a product's price increases, what happens to its substitute's demand curve?
Shifts to the right (increases)
Tea price rises 15%; coffee demand rises 12%. What type of goods are they?
Tea price rises 15%; coffee demand rises 12%. What type of goods are they?
Substitutes