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

Income elasticity of demand — practice question

In 2014, as part of efforts to discover new uses for seven sites that had formerly been used to bury rubbish, the Hong Kong government said that private companies would be permitted to bid for redevelopment of the sites. Which diagram illustrates the change in the market for these sites?

  • ADiagram A: supply curve shifts right (increase in supply)
  • B[IMAGE:9708_m17_qp_12_p3_diagram_3]
  • CDiagram C: supply curve shifts left (decrease in supply)
  • DDiagram D: demand curve shifts left (decrease in demand)

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