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

Income elasticity of demand — practice question

Demand for houses in London has pushed house prices up a great deal over the past five years. Many people are now unable to afford to purchase a house. What can be concluded from this?

  • AOn a demand and supply diagram for houses there has been a movement up the demand curve.
  • BOn a demand and supply diagram for houses there has been a movement up the supply curve.
  • CThe price elasticity of demand for houses is greater than one.
  • DThe price elasticity of supply of houses is zero.

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