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

Income elasticity of demand — practice question

(a)[2]

Give two reasons why palm oil matters for the economy of Malaysia.

(b)[5]

Analyse, with the aid of diagrams, the effects of an increase in demand for palm oil on the markets for palm oil and palm kernel cake.

(c)[2]

(i) In what way can Table 1 be used to show one measure of productivity in palm oil production?

(c(ii))[2]

(ii) Use Table 1 to compare the productivity of palm oil production in Indonesia in 1995 with that in 2008.

(d)[3]

What extra information would help to explain changes in productivity in palm oil production in Indonesia?

(e)[6]

Discuss any two policies that governments could use to stop environmental harm caused by palm oil production.

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