A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2023 · Q81 Mark

After a 10% decrease in a consumer's income, the consumer's demand for a good rises from 100 to 105. What is the value of the consumer's income elasticity of demand for this good?

A-2.0

B-0.5

C+0.5

D+2.0

✓ Correct answer

B: -0.5

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2023 Paper 1 Variant 2, question 8.

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