Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

Over the last few years, demand for cars in Indonesia has become less price elastic, whereas the supply of cars has become more price elastic. Which pair of events could have led to these changes?

  • Aquality of public transport decreased; time taken to produce a car decreased
  • Bquality of public transport decreased; time taken to produce a car increased
  • Cquality of public transport increased; time taken to produce a car decreased
  • Dquality of public transport increased; time taken to produce a car increased

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