Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

The demand for tablets rises, while the cost of making them falls. What effect will this have on the price of tablets and on the quantity supplied?

  • Aprice: fall; quantity: uncertain
  • Bprice: rise; quantity: increase
  • Cprice: uncertain; quantity: increase
  • Dprice: uncertain; quantity: uncertain

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