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Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 11

9708Price elasticity, income elasticity and cross elasticity of demand

Doctors are concerned about the negative health effects of sugary drinks. When would a tax on sugary drinks be least effective in improving health?

  1. Awhen the demand for sugary drinks is income elastic
  2. Bwhen the demand for sugary drinks is income inelastic
  3. Cwhen the demand for sugary drinks is price elastic
  4. Dwhen the demand for sugary drinks is price inelastic

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Correct answer: D. when the demand for sugary drinks is price inelastic

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