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

Price elasticity of demand — practice question

What does it mean if the income elasticity of demand for a good is –0.2?

  • AWhen income rises less of the good is bought.
  • BWhen income rises more of the good is bought.
  • CWhen price falls more of the good is bought.
  • DWhen price rises less of the good is bought.

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