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

Income elasticity of demand — practice question

Demand for a good drops while its costs of production also fall. What combined impact will these changes have on the good’s price and on the quantity supplied?

  • Aprice decrease; quantity supplied decrease
  • Bprice decrease; quantity supplied uncertain
  • Cprice uncertain; quantity supplied decrease
  • Dprice uncertain; quantity supplied uncertain

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