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

Price elasticity of demand — practice question

The table illustrates how one person’s weekly purchases of biscuits and coffee change as income changes. Which statement about the income elasticity of demand across the income range shown is correct?

  • AFor biscuits it is greater than 1.
  • BFor biscuits it is zero.
  • CFor coffee it is less than 1.
  • DFor coffee it is unitary.

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