Economics Multiple Choice Question – 6 July 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The income elasticity of demand for restaurant meals is 1.61. So……. ?

Select ONE answer:

  1. if income increases by 16.1 percent, the quantity demanded of restaurant meals will
    increase by 10 percent.
  2. if income increases by 10 percent, the quantity demanded of restaurant meals will increase
    by 16.1 percent.
  3. restaurant meals are an income elastic normal good.
  4. Both answers B and C are correct.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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