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

Price elasticity of demand — practice question

The table gives a consumer’s spending on a selection of goods at different income levels. For which good is the consumer’s income elasticity of demand above zero but below one?

  • AGood A: consumer’s expenditure $10, $18, $40 at incomes $40, $50, $100
  • BGood B: consumer’s expenditure $10, $11, $20 at incomes $40, $50, $100
  • CGood C: consumer’s expenditure $10, $10, $10 at incomes $40, $50, $100
  • DGood D: consumer’s expenditure $10, $8, $6 at incomes $40, $50, $100

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