Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 5
9708Price elasticity, income elasticity and cross elasticity of demand
When is the price elasticity of demand for a product most likely to be price elastic?
- AA large percentage of income is spent on the product.
- BIt is measured in the short run.
- CIt is a necessity product.
- DThere are few substitutes available.
As printed in the paper
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Correct answer: A. A large percentage of income is spent on the product.
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