Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

An indirect tax is levied on a product, so consumers’ total expenditure rises. Which row identifies this situation?

  • Aprice decreases; price elasticity elasticity: elastic
  • Bprice decreases; price elasticity elasticity: inelastic
  • Cprice increases; price elasticity elasticity: elastic
  • Dprice increases; price elasticity elasticity: inelastic

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