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

Income elasticity of demand — practice question

Across the world, the film industry has raised its spending to more than $1 billion each year on successful anti-piracy measures, and it funds this through charges on DVD products. In a demand and supply diagram for the market for legally produced DVDs, how would this be represented?

  • Ademand curve shifts left; supply curve shifts left
  • Bdemand curve shifts left; supply curve shifts right
  • Cdemand curve shifts right; supply curve shifts left
  • Ddemand curve shifts right; supply curve shifts right

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