A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2024 · Q71 Mark
The price elasticity of demand for good X is −2.4, its income elasticity of demand is -0.4 and the cross elasticity of demand for good X with respect to good Y is +0.8. What is the correct description of good X?
Ainferior good, price-elastic demand and substitute for good Y
Binferior good, price-inelastic demand and complement to good Y
Cnormal good, price-elastic demand and complement to good Y
Dnormal good, price-inelastic demand and substitute for good Y
✓ Correct answer
A: inferior good, price-elastic demand and substitute for good Y
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