MCQ for Economics Nov 2005 Paper 1 Question 8

[arvind0708]

8 The price of Good X rises by 20 %. As a result, the demand for a substitute Good Y rises by 10 %.
What is the cross-elasticity of demand for Good Y with respect to Good X?
A + 2 B + 0.5 C - 0.5 D - 2


Solve it for me.

 

[Xenon]

U really need to work on elasticity. This is very simple, just use the formula for XED and u will get the answer(+0.5)