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

Income elasticity of demand — practice question

(a)[8]

Explain what causes the shift in equilibrium price and equilibrium quantity of a good when incomes in an economy rise.

(b)[12]

Discuss the effectiveness of any possible measures to ensure that food would remain available to consumers in an economy where drought frequently interrupts food supplies.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Knowledge and understanding of the income elasticity of demand concept

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