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

Income elasticity of demand — practice question

The diagram illustrates the equilibrium price and quantity of good X. The starting market equilibrium is marked by point E. What could make the market equilibrium shift to point F?

  • Aa decrease in the costs of producing good X
  • Ba decrease in the demand for good X
  • Can increase in the price of a substitute good
  • Dthe imposition of a specific sales tax on producers of good X

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI