Gce Model Questions Vol1 2017 Economics Question 1

Practice objective / multiple choice question 1 from the 2017 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2017 Economics Objective / Multiple Choice Easy Difficulty
Question 1 GCE_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A consumer's weekly income rises from \(£200\) to \(£260\). During the same period, the quantity demanded of a particular good increases from \(40\) units to \(55\) units. Calculate the income elasticity of demand for the good and state whether it is a normal or inferior good.

Answer Options

A. Income elasticity = -1.25; the good is a normal good.
Correct Answer B. Income elasticity = 1.25; the good is a normal good.
C. Income elasticity = 1.25; the good is an inferior good.
D. Income elasticity = 0.75; the good is a normal good.
Correct Answer
B
Correct Option:
Income elasticity = 1.25; the good is a normal good.

About This Question

This is Gce Model Questions Vol1 2017 Economics Question 1. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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