Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 7
9708Price elasticity, income elasticity and cross elasticity of demand
A firm sells 10 000 units of a product which has an estimated income elasticity of demand of –0.4. If incomes have fallen by 10%, what is the new quantity demanded?
- A9000
- B9600
- C10 000
- D10 400
As printed in the paper
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Correct answer: D. 10 400
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