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

Price elasticity of demand — practice question

Good X has a price elasticity of demand of –2.4, an income elasticity of demand of –0.4 and a cross elasticity of demand with good Y of +0.8. Which description best fits 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

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