A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2015 · Q71 Mark
A survey into the market for good X found that it is an inferior good and a close substitute for good Y. Which values for the income elasticity of demand for good X and its cross elasticity of demand with respect to the price of good Y would support this? [Table 7.1]
A-1.2
-0.9
B-1.2
+0.9
C+1.2
-0.9
D+1.2
+0.9
✓ Correct answer
B: -1.2 +0.9
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →