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

Price elasticity of demand — practice question

(a)[8]

Explain two factors that determine the price elasticity of demand for a particular brand of car and how this price elasticity of demand may alter over time.

(b)[12]

Discuss whether knowledge of price elasticity of demand or income elasticity of demand would be more useful to a business that produces cars.

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