I know the answer to this question is C, but I can't remember the method for gaining the answer.
Could someone kindly show me how to find the answer please?
AS Economics Past Paper Question - help? Watch
- Thread Starter
- 17-12-2010 18:07
- 17-12-2010 19:55
Income elasticity of demand = the responsiveness of demand given a change in income.
Income elasticity of demand = % change in demand divided by % change in income.
Work out the % change in demand for holidays in each of the different countries resulting from a 10% increase in income and see which option is correct; for Morocco, 0.8 = %D/10; %D = 8; the answer cannot be A.