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1.3 Price determination in a competitive market

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Question 106

The income elasticity of demand for instant noodles is -0.8. This means that:

A

a 10% increase in the price of instant noodles will lead to an 8% decrease in quantity demanded.

B

instant noodles are an inferior good.

C

instant noodles have a negative cross-price elasticity of demand.

D

as consumer incomes rise, more instant noodles will be purchased.

Markscheme

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market

256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.

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