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Pearson Edexcel IAL Economics 1.3.2.3h Interpretation of numerical value

Practise interpreting income elasticity values from tables and diagrams to classify goods and predict demand shifts after income changes.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • calculate the demand effect of a real income change using an income elasticity value
  • draw a demand shift and new equilibrium after a real income change in context

1.3.2.3h - Interpretation of numerical values of income elasticity of (continued) demand: • question 1

[Maximum number: 1]

The table shows the estimated income elasticity of demand for four items.

Table for Question 1.3.2.3h - Interpretation of numerical values of income elasticity of (continued) demand: • question 1 — Edexcel A-Level Economics AS

Which one of the following can be deduced from the table?

A

Caribbean holidays are an inferior good

B

Demand for healthcare is income elastic

C

Electricity is a normal good

D

Demand for bus travel is price inelastic

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