Following a 12% increase in consumer incomes, the quantity demanded of artisanal oat-based ice cream increases by 15%. Meanwhile, a 5% increase in the price of waffle cones leads to a 3% decrease in the quantity demanded of this ice cream.
These figures indicate that artisanal oat-based ice cream is:
an inferior good and a complement to waffle cones.
an inferior good and a substitute for waffle cones.
a normal good and a complement to waffle cones.
a normal good and a substitute for waffle cones.
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.