Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 6
9708Price elasticity, income elasticity and cross elasticity of demand
An indirect tax is imposed on a product, causing total expenditure by consumers to increase. Which row identifies this situation?
- Adecreases, elastic
- Bdecreases, inelastic
- Cincreases, elastic
- Dincreases, inelastic
As printed in the paper
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Correct answer: D. increases, inelastic
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