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

Income elasticity of demand — practice question

The diagram illustrates the demand for and supply of cream. The initial equilibrium is point X. Strawberries and cream are complementary goods. If the price of strawberries falls while the cost of producing cream rises, which point shows the new equilibrium?

  • AA
  • BB
  • CC
  • DD

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