Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

Why is it especially hard to make decisions by using cost-benefit analysis?

  • AExternal costs are difficult to estimate accurately.
  • BGovernments have no method of valuing time savings.
  • CMarket forces have no influence on the outcome.
  • DPrivate costs can vary from one day to the next.

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