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

Income elasticity of demand — practice question

What would lead to market disequilibrium?

  • Awhen a decrease in the demand for a product leads to a price fall that results in some producers leaving the market
  • Bwhen a decrease in the demand for a product leads to some producers being unable to sell products at the current price
  • Cwhen a decrease in the supply of a product leads to a price rise that results in the market for the product clearing
  • Dwhen a decrease in the supply of a product leads to a price rise that makes it too expensive for some poorer households

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