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

Price elasticity of demand — practice question

What conclusion can be drawn about a product with an income elasticity of demand (YED) of –1.5 and a cross-elasticity of demand (XED) of +1.2 relative to another product?

  • AThe product is an inferior good. The other product is a complement.
  • BThe product is an inferior good. The other product is a substitute.
  • CThe product is a normal good. The other product is a complement.
  • DThe product is a normal good. The other product is a substitute.

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