Economics 9708 · AS & A Level · 1.6

1.6 — practice question

The product is an inferior good and has no close substitutes. It also acts as a complement to good X. Which product fits this description?

  • Aprice elasticity of demand −2; income elasticity of demand +2; cross elasticity of demand w.r.t price of X +1
  • Bprice elasticity of demand −2; income elasticity of demand +2; cross elasticity w.r.t price of X −1
  • Cprice elasticity of demand −0.5; income elasticity of demand −2; cross elasticity w.r.t price of X +1
  • Dprice elasticity of demand −0.5; income elasticity of demand −2; cross elasticity w.r.t price of X −1

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