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

Income elasticity of demand — practice question

Palm oil and sunflower oil are substitutes. Palm oil and palm kernel cake for animal feed are in joint supply. If all other factors stay the same, what effects will a fall in the price of sunflower oil have?

  • Aprice of palm oil: fall; price of palm kernel cake: fall
  • Bprice of palm oil: fall; price of palm kernel cake: rise
  • Cprice of palm oil: rise; price of palm kernel cake: fall
  • Dprice of palm oil: rise; price of palm kernel cake: rise

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