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

Income elasticity of demand — practice question

Global stocks of cod are now being endangered by over-fishing, whereas supplies of the less favoured Alaskan pollock remain abundant. How may the price mechanism work to reduce the depletion of fish stocks?

  • AThe price of both cod and Alaskan pollock will fall.
  • BThe price of both cod and Alaskan pollock will rise.
  • CThe price of cod will fall whilst the price of Alaskan pollock will rise.
  • DThe price of cod will rise whilst the price of Alaskan pollock will fall.

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