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

Price elasticity of demand — practice question

Country M places a tariff on steel imports. Which values of price elasticity would lead to the least fall in steel imports into M?

  • Aprice elasticity of supply of domestic steel producers in country M 0.2; price elasticity of demand for steel in country M 0.4
  • Bprice elasticity of supply 1.0; price elasticity of demand 0.8
  • Cprice elasticity of supply 1.5; price elasticity of demand 1.0
  • Dprice elasticity of supply 2.0; price elasticity of demand 1.2

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