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

Price elasticity of demand — practice question

The diagram illustrates how a 10% rise in consumer incomes moves the demand for good X from D to D1. Which statement about good X is correct?

  • AIt is a normal good with income elastic demand.
  • BIt is a normal good with income inelastic demand.
  • CIt is an inferior good with income elastic demand.
  • DIt is an inferior good with income inelastic demand.

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