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Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 8

9708Price elasticity, income elasticity and cross elasticity of demand

Which statement is true if the income elasticity of demand for a good has a value of –0.2?

  1. AWhen income rises less of the good is bought.
  2. BWhen income rises more of the good is bought.
  3. CWhen price falls more of the good is bought.
  4. DWhen price rises less of the good is bought.

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Correct answer: A. When income rises less of the good is bought.

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