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Economics (AS & A Level) · Oct / Nov 2024 · Paper 13 · Question 9

9708Price elasticity, income elasticity and cross elasticity of demand

A good has the following elasticity values. cross elasticity of demand: +1.4 income elasticity of demand: –0.8 Which statement is correct?

  1. AThe good is a complement and inferior.
  2. BThe good is a complement and normal.
  3. CThe good is a substitute and inferior.
  4. DThe good is a substitute and normal.

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Correct answer: C. The good is a substitute and inferior.

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