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Question 21M.3.HL.TZ0.1c

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Date May 2021 Marks available [Maximum mark: 2] Reference code 21M.3.HL.TZ0.1c
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number c Adapted from N/A
c.
[Maximum mark: 2]
21M.3.HL.TZ0.1c
(c)

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

[2]

Markscheme

PLEASE NOTE: This question part is not on the syllabus for first teaching 2020/first exams 2022.

 

XED =%∆Q d (Y)%∆P (X)=516.67

Any valid working (correct %Δ Qd(Y) or %Δ P(X), provided the formula is not inverted) is sufficient for [1].

= 0.3

An answer of 0.3 without any valid working is sufficient for [1].

Examiners report

The question was generally well-answered. Lower-achieving responses mixed the numerator/denominator, calculated the percentages relative to the final price/quantity or took the change in price to be zero. 

Syllabus sections