Economics (AS & A Level) · Oct / Nov 2025 · Paper 13 · Question 9
9708Price elasticity, income elasticity and cross elasticity of demand
Good X has an income elasticity of demand (YED) value of −0.8. Its cross elasticity of demand (XED) with respect to good Y is also −0.8. What are the characteristics of good X?
- Aa normal good that is a complement to good Y
- Ba normal good that is a substitute for good Y
- Can inferior good that is a complement to good Y
- Dan inferior good that is a substitute for good Y
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Correct answer: C. an inferior good that is a complement to good Y
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