• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2010 Q22

K

kika258

Member
April 2010 Q 22 says:

A consumer always spends one quarter of his income on travel. What are his price elasticity of dmand for travel and his income elasticity of demand for travek respectively:

A 1 and 0.25
B 0 and 0.25
C 1 and 0
D 0 and 1.

D is the answer. Can someone explain why? I can't figure out how could i have come to the answer.
 
This question contains an error and none of the answers are correct.

The correct answer is:

-1 and 1

This is explained fully in the Subject CT7 ASET.

I hope this helps! :)
 
You must log in or register to reply here.
Back
Top