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Economics (AS & A Level) · Feb / March 2024 · Paper 12 · Question 8

9708Price elasticity, income elasticity and cross elasticity of demand

The diagram shows two straight line demand curves, X and Y. What is correct about curves X and Y?

  1. ABoth X and Y are unit price elastic over their whole length.
  2. BBoth X and Y have the same elasticity at every price.
  3. CX has a higher price elasticity than Y at every price.
  4. DY is more likely to have substitutes than X.

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Correct answer: C. X has a higher price elasticity than Y at every price.

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