Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 15
9708Price elasticity, income elasticity and cross elasticity of demand
The market for good X is in equilibrium with 1000 units sold at a price of $10. The government puts a specific tax of $1 per unit on the producers of good X. Which value for the price elasticity of demand for good X will generate the largest tax revenue?
- A0
- B0.5
- C1.0
- D1.5
As printed in the paper
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Correct answer: A. 0
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