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

Price elasticity of demand — practice question

What conclusion can be drawn about a product that has an income elasticity of demand (YED) of +1.5 and a cross elasticity of demand (XED) of +1.2?

  • Athe product is an inferior good; the product has a close complement
  • Bthe product is an inferior good; the product has a close substitute
  • Cthe product is a normal good; the product has a close complement
  • Dthe product is a normal good; the product has a close substitute

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