Keep on boating
Read the article Fuel prices not expected to impact boating participation this summer and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
Define the term 'cross price elasticity of demand'.
Identify the principal determinants of the demand for powerboats.
Analyse the main factors that determine the cross price elasticity of demand for powerboats with respect to the price of fuel.
Discuss the likely difference between the values of the cross price elasticity of demand for cars with respect to the price of fuel and the cross price elasticity of demand for powerboats with respect to fuel.