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

Income elasticity of demand — practice question

The table illustrates a competitive market at equilibrium across two periods. What might account for the shift from period 1 to period 2?

  • Aan increase in the price of a complement
  • Ban increase in the price of a substitute
  • Cthe imposition of a minimum price of 60 cents by a government
  • Dthe imposition of an indirect tax on suppliers

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