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

Income elasticity of demand — practice question

If demand and supply in a competitive market each fall by 10% at every price, what happens to the equilibrium price and the quantity sold?

  • Aprice: 10% decrease; quantity sold: 10% decrease
  • Bprice: 10% decrease; quantity sold: no change
  • Cprice: 5% decrease; quantity sold: 5% decrease
  • Dprice: no change; quantity sold: 10% decrease

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI