A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2025 · Q91 Mark

Public transport in an economy has an income elasticity of demand of –0.36. What does this mean about public transport?

AIt is an inferior good.

BIt is a necessity.

CIt is a normal good.

DIt has close substitutes.

✓ Correct answer

A: It is an inferior good.

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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 2025 Paper 1 Variant 2, question 9.

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