A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2021 · Q181 Mark
In an attempt to reduce crime, a government introduces a subsidy on the production of burglar alarms, but sales rise very little. Which possible characteristics of the good would lead to this outcome?
Aprice elasticity of demand: high; price elasticity of supply: high
Bprice elasticity of demand: high; price elasticity of supply: low
Cprice elasticity of demand: low; price elasticity of supply: high
Dprice elasticity of demand: low; price elasticity of supply: low
✓ Correct answer
D: price elasticity of demand: low; price elasticity of supply: low
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