Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 8
9708Price elasticity, income elasticity and cross elasticity of demand
The table shows Lee's and Yim's price elasticity of demand for restaurant meals and cinema tickets. There is a rise in the price of restaurant meals and a fall in the price of cinema tickets. What can be concluded after these price changes?
- ARestaurant owners will receive more income.
- BLee will spend more money on both cinema tickets and restaurant meals.
- CYim will spend more money on both cinema tickets and restaurant meals.
- DCinema owners will receive less income.
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Correct answer: C. Yim will spend more money on both cinema tickets and restaurant meals.
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