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

Income elasticity of demand — practice question

During 2016–2017, a government allocated $135 billion to the health service. The diagram illustrates healthcare provision in that country. What can we infer about healthcare provision in the country if it were available at zero price?

  • AAt price P the benefits to society are maximised.
  • BIt is non-rival in consumption.
  • CIt is unlimited in supply due to government funding.
  • DIt will need rationing as it will be overconsumed.

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