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

Income elasticity of demand — practice question

Butter and buttermilk are products in joint supply. In each market, the supply curves slope upwards to the right. Due to health concerns, consumers reduce their consumption of butter. What are the initial effects of this on supply in the butter market and the buttermilk market?

  • Amove left along supply curve / move left along supply curve
  • Bmove left along supply curve / shift left of the supply curve
  • Cshift left of the supply curve / move left along supply curve
  • Dshift left of the supply curve / shift left of the supply curve

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