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

Income elasticity of demand — practice question

The diagrams indicate a movement in demand from D1 to D2 and a movement in supply from S1 to S2 for four different goods. Which diagram represents the good for which further new uses have been found and which also experiences an increase in government subsidy?

  • A[IMAGE:9708_s12_qp_12_p6_diagram_7]
  • BDiagram B
  • C[IMAGE:9708_s12_qp_12_p6_diagram_6]
  • DDiagram D

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