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

Price elasticity of demand — practice question

(a)[8]

Explain, using economic analysis, how economists determine whether goods are substitutes or complementary goods.

(b)[12]

Explain on which goods and services the government should impose indirect taxes so that the incidence of the tax falls mainly on consumers, and discuss how far consumer surplus would be affected.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI