Economics Multiple Choice Question – 30 March 2022

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

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Which elasticity values indicate that cars are normal goods and that petrol is a complement to car use?

LHS – income elasticity of demand (YED) for cars & RHS – cross elasticity of demand (XED) for petrol relative to changes in car prices

Select ONE answer:

  1. YED is negative & XED is negative
  2. YED is negative & XED is positive
  3. YED is positive & XED is negative
  4. YED is positive & XED is positive

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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