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

Income elasticity of demand — practice question

The table sets out the demand schedule for avocados in a market on a specific day. On that day, the supply of avocados was fixed. Which statement is correct?

  • AIf the supply was 490, at a price of $2.60 there was an excess demand of 10 avocados.
  • BIf the supply was 650, at a price of $2.40 there was an excess demand of 10 avocados.
  • CIf the supply was 810, at a price of $2.00 there was an excess supply of 10 avocados.
  • DIf the supply was 890, at a price of $1.80 there was an excess supply of 10 avocados.

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