Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 9
9708Price elasticity, income elasticity and cross elasticity of demand
In which situation is the demand for a product said to be price elastic?
- AThe quantity demanded responds to a change in price.
- BAn increase in price brings about a decrease in the quantity demanded.
- CAn increase in price induces consumers to spend more on the product.
- DA decrease in price brings about an increase in revenue.
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Correct answer: D. A decrease in price brings about an increase in revenue.
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