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

Income elasticity of demand — practice question

Shoe manufacturers often use leather when producing their most expensive shoes. Because there is a global shortage of leather, its price has increased. What effect will this price change have?

  • AThe demand curve for leather shoes will shift to the left.
  • BThe demand curve for a substitute for leather shoes will shift to the right.
  • CThe supply curve for leather shoes will shift to the right.
  • DThe supply curve for a substitute for leather to make expensive shoes will shift to the right.

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