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Edexcel IGCSE Economics 1.1.4 R Interpreting Income Elasticity Values Questions

Practise YED interpretation questions by classifying products from positive, negative or above-one income elasticity values.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Interpret a positive YED below one as a normal good, not a luxury good.
  • Classify luxury goods where demand rises proportionally more than income.
  • Identify inferior goods from a negative relationship between income and demand.

Edexcel IGCSE Economics 1.1.4 R Interpreting Income Elasticity Values Questions question 1

[Maximum number: 1]

When a firm increased its prices, many consumers stopped buying its products.

A product has an income elasticity of demand (YED) of -0.9

Which one of the following best describes the product?

A

A public good

B

A normal good

C

A luxury good

D

An inferior good

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