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

Income elasticity of demand — practice question

How much must the demand curve move for farm incomes to stay the same? (Diagram: demand curve D; supply changes from S1 to S2 following a good harvest.)

  • A500 tonnes at all prices
  • B1000 tonnes at all prices
  • C2000 tonnes at all prices
  • D4000 tonnes at all prices

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