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

Price elasticity of demand — practice question

What is correct about income elasticity of demand, but not about price elasticity of demand?

  • AIt helps firms differentiate between goods with elastic and inelastic demand.
  • BIt helps firms differentiate between normal and inferior goods.
  • CIt helps firms predict the changes in the quantity demanded.
  • DIt helps firms predict the changes in sales revenues.

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