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

Income elasticity of demand — practice question

Goods X, Y and Z each have downward-sloping demand curves and upward-sloping supply curves. Good X is in joint supply with good Y and in joint demand with good Z. Demand for good X increases. What changes will occur in the prices and sales of goods Y and Z?

  • Agood Y: price fall, sales fall; good Z: price rise, sales rise
  • Bgood Y: price fall, sales rise; good Z: price rise, sales rise
  • Cgood Y: price rise, sales fall; good Z: price fall, sales rise
  • Dgood Y: price rise, sales rise; good Z: price fall, sales fall

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI