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

Income elasticity of demand — practice question

A company makes goods solely for export. Which change could lead to an increase in the price of its goods, while the quantity sold remains the same?

  • Adomestic workers’ wages unchanged / foreign consumers’ wages fall
  • Bdomestic workers’ wages fall / foreign consumers’ wages unchanged
  • Cdomestic workers’ wages fall / foreign consumers’ wages fall
  • Ddomestic workers’ wages rise / foreign consumers’ wages rise

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