Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  2. Economics Edexcel A
  3. Question bank

1.2.3 Price, income and cross elasticities of demand

EasyMediumHard
1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950515253
Question 12

The income elasticity of demand for budget brand white bread is estimated to be -0.8.

This implies that:

a 10% increase in its price will lead to an 8% decrease in demand

as household incomes fall, consumers will buy less budget brand white bread

budget brand white bread has a negative cross elasticity of demand compared to branded bread

budget brand white bread is an inferior good

1.2.3 Price, income and cross elasticities of demand Questions

  1. A Level
  2. /Economics
  3. /1.2.3 Price, income and cross elasticities of demand