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HomeCIE IGCSE EconomicsIncome elasticity of demand: concept, calculation and implications
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Income elasticity of demand: concept, calculation and implications
Practice Questions

20 CIE IGCSE Economics questions on Income elasticity of demand: concept, calculation and implications, each with instant feedback and a full examiner-style mark scheme.

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Question 1 · 1 mark · Difficulty 1/3

What does a positive income elasticity of demand indicate about a good?

  1. Demand falls when income rises
  2. Demand rises when income rises
  3. Demand is unaffected by income changes
  4. The good has no substitutes
Show answer & explanation
✓ Answer: BDemand rises when income rises
Award 1 mark for identifying that positive YED means demand and income move in the same direction. A is incorrect — this describes a negative YED (inferior good). C is incorrect — zero YED would indicate no relationship. D is incorrect — substitutes relate to cross elasticity of demand, not income elasticity.
Question 2 · 1 mark · Difficulty 1/3

The income elasticity of demand for a product is calculated to be +2.4. This product is best classified as:

  1. An inferior good
  2. A necessity
  3. A luxury good
  4. A Giffen good
Show answer & explanation
✓ Answer: CA luxury good
Award 1 mark for identifying that YED > +1 indicates a luxury good (income elastic). A is incorrect — inferior goods have negative YED. B is incorrect — necessities have YED between 0 and +1. D is incorrect — Giffen goods relate to price elasticity, not income elasticity.
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CIE IGCSE Economics: Income elasticity of demand: concept, calculation and implications FAQ

How many CIE IGCSE Economics questions on Income elasticity of demand: concept, calculation and implications are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Income elasticity of demand: concept, calculation and implications for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Income elasticity of demand: concept, calculation and implications practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Income elasticity of demand: concept, calculation and implications questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Income elasticity of demand: concept, calculation and implications typically tested on CIE IGCSE Economics papers?
Income elasticity of demand: concept, calculation and implications appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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