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

Price elasticity of demand — practice question

From the estimate made in 2010 that milk had an income elasticity of demand of –0.6, what conclusion can be drawn about milk?

  • AIt accounts for only a small proportion of household expenditure.
  • BIt has very few substitutes.
  • CHousehold expenditure on milk will decrease if the price of milk increases.
  • DIt is an inferior good.

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