The table below shows estimates of the price elasticity of supply and price elasticity of demand for lithium carbonate.
| Lithium Carbonate | |
|---|---|
| Price elasticity of supply | +0.25 |
| Price elasticity of demand | -0.18 |
Which one of the following can be inferred from the table?
A 10%10\%10% increase in the price of lithium carbonate would cause a 25%25\%25% increase in the quantity supplied
Lithium carbonate is an inferior good with income elastic demand
Both the demand and supply of lithium carbonate are price inelastic
The demand for lithium carbonate is more responsive to changes in price than the supply
119 exam-style questions on Edexcel A A Level Economics 1.2.3 Price, income and cross elasticities of demand. Each one has a worked solution and a mark scheme showing where the marks go.