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

Price elasticity of demand — practice question

(a)[8]

Starting in 2030, most new car production in the United Kingdom (UK) is expected to be electric cars. Leaving aside the price of electric cars, explain the determinants of demand for electric cars and consider which of these determinants is likely to be the most significant at present.

(b)[12]

Assess whether cross elasticity of demand is likely to matter more in determining the demand for electric cars than income elasticity of demand.

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