Economics (AS & A Level) · May / June 2021 · Paper 11 · Question 8
9708Price elasticity, income elasticity and cross elasticity of demand
Why is the price elasticity of demand for a particular brand of coffee likely to be higher than the price elasticity of demand for coffee in general?
- ACoffee in general takes up a higher proportion of consumers’ income.
- BConsumers may be very loyal to a particular brand of coffee.
- CThere are more substitutes for a particular brand of coffee than for coffee in general.
- DTotal demand for coffee is higher than for any one brand.
As printed in the paper
Show the answer
Correct answer: C. There are more substitutes for a particular brand of coffee than for coffee in general.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.