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

Income elasticity of demand — practice question

The diagram shows the market for electric cookers. What is the most likely reason for the equilibrium shifting from point X to point Y?

  • Aa fall in the price of electric cookers
  • Ban increase in a specific tax on electric cookers
  • Can increase in the number of households
  • Dan increase in the price of electricity

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