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

Price elasticity of demand — practice question

A product has these elasticity figures: cross elasticity of demand +1.4; income elasticity of demand –0.8. Which statement is correct?

  • AThe good is a complement and inferior.
  • BThe good is a complement and normal.
  • CThe good is a substitute and inferior.
  • DThe good is a substitute and normal.

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