Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  3. Economics AQA
  5. Question bank

1.3 Price determination in a competitive market

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354
Question 18

The income elasticity of demand for a product is -2.5. Which one of the following statements is correct?

A 10%10\%10% increase in income leads to a 25%25\%25% fall in quantity demanded.

A 10%10\%10% increase in price leads to a 25%25\%25% fall in quantity demanded.

The product is a luxury, normal good.

Demand for the product is income inelastic.

1.3 Price determination in a competitive market Questions

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