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

Income elasticity of demand — practice question

The diagram illustrates the demand for, and supply of, carrots. What is correct at price P1?

  • AThere will be a shortage of carrots.
  • BThere will be a surplus of carrots.
  • CThere will be an increase in the sale of carrots.
  • DThere will be market clearing of carrots.

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