Economics (AS & A Level) · Oct / Nov 2023 · Paper 12 · Question 8
9708Price elasticity, income elasticity and cross elasticity of demand
After a 10% decrease in a consumer's income, the consumer's demand for a good rises from 100 to 105. What is the value of the consumer's income elasticity of demand for this good?
- A–2.0
- B–0.5
- C+0.5
- D+2.0
As printed in the paper
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Correct answer: B. –0.5
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