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

Price elasticity of demand — practice question

To try to cut crime, a government offers a subsidy for the production of burglar alarms, yet sales increase only a little. Which possible features of the good could explain this result?

  • Aprice elasticity of demand high; price elasticity of supply high
  • Bprice elasticity of demand high; price elasticity of supply low
  • Cprice elasticity of demand low; price elasticity of supply high
  • Dprice elasticity of demand low; price elasticity of supply low

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