What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to price, income and cross elasticities of demand. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on price, income and cross elasticities of demand, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Using absolute changes instead of percentage changes.
- Forgetting that PED is normally negative.
- Classifying PED using the negative sign rather than its absolute magnitude.
- Forgetting the sign of YED identifies normal versus inferior goods.
- Saying all positive-YED goods are luxuries.
- Saying all necessities have YED equal to zero.
- Reversing the numerator and denominator in XED.
- Saying a negative XED indicates substitutes.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Price, Income and Cross Elasticities of Demand revision notes.