Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 14
9708Price elasticity, income elasticity and cross elasticity of demand
The table shows Lee's and Yim's price elasticity of demand for restaurant meals and cinema tickets. | | Lee | Yim | |---|---|---| | restaurant meals | –1.2 | –0.8 | | cinema tickets | –0.7 | –0.3 | There is a rise in the price of both products. What can definitely be concluded after these price changes?
- ARestaurant owners will receive more income.
- BLee will spend more money on both products.
- CYim will spend more money on both products.
- DCinema owners will receive less income.
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Correct answer: C. Yim will spend more money on both products.
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