(a)[8]
‘A free market price functions as a rationing and allocating mechanism.’ Explain how it does this.
(b)[12]
Discuss why certain goods and services are usually supplied directly by the government rather than through the market.
Economics 9708 · AS & A Level · Income elasticity of demand
Income elasticity of demand — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Understanding of a free market price: price fixed through the operation of demand and supply.” …
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