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

Income elasticity of demand — practice question

What might have led the price to move from P1 to P2? (the diagram shows the diamond market, with supply moving from S1 to S2)

  • Aa fall in the price of substitute gems
  • Ba fall in the tax on diamonds
  • Ca rise in the productivity of diamond miners
  • Da rise in the wages of diamond miners

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