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

Price elasticity of demand — practice question

The table indicates how one person’s weekly consumption of biscuits and coffee changes as income changes. Income $100: biscuits 0 packs, coffee 5 cups. Income $150: biscuits 5 packs, coffee 10 cups. Which statement about the income elasticity of demand across the income range shown is correct?

  • AFor biscuits it is greater than 1.
  • BFor biscuits it is zero.
  • CFor coffee it is less than 1.
  • DFor coffee it is unitary.

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