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

Price elasticity of demand — practice question

Which combination of demand elasticities would be relevant for a firm that wants to raise its revenue? (For each option, state whether price elasticity, cross elasticity and income elasticity are relevant.)

  • Aprice elasticity: yes; cross elasticity: yes; income elasticity: yes
  • Bprice elasticity: yes; cross elasticity: yes; income elasticity: no
  • Cprice elasticity: yes; cross elasticity: no; income elasticity: yes
  • Dprice elasticity: no; cross elasticity: yes; income elasticity: yes

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