Paper 2 · June 2025 · Price Elasticity of Demand

Income elasticity of demand measures the responsiveness of quantity demanded of a good to a change in

Athe level of advertising spending on the good

Bconsumer income, other things held constant

Cthe good's own price, other things held constant

Dthe price of a related good, other things held constant

Explanation

Income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income, holding price and other factors constant.

Derived from ZIMSEC A-level Economics Paper 2 (Data Response), June 2025, Q1

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