Skip to content
MathsGenie logo
Open app

Course home

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

Elasticity

EasyMediumHard
1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
Question 5

An empirical economic study estimates that the income elasticity of demand (YED\text{YED}YED) for public bus transit in a metropolitan area is -0.35, while its cross-price elasticity of demand (XED\text{XED}XED) with respect to the price of petrol is +0.65.

Which of the following combinations correctly classifies public bus transit and describes its relationship with petrol?

Classification of public bus transit: Normal good; Relationship with petrol: Complements

Classification of public bus transit: Inferior good; Relationship with petrol: Substitutes

Classification of public bus transit: Inferior good; Relationship with petrol: Complements

Classification of public bus transit: Normal good; Relationship with petrol: Substitutes

Elasticity Questions

  1. A Level
  2. /Economics
  3. /Elasticity