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

Income elasticity of demand — practice question

When a free market is not in equilibrium because there is a shortage of a product, how will the price, the quantity demanded and the quantity supplied change as equilibrium is approached?

  • Aprice decrease, quantity demanded decrease, quantity supplied increase
  • Bprice decrease, quantity demanded increase, quantity supplied decrease
  • Cprice increase, quantity demanded decrease, quantity supplied increase
  • Dprice increase, quantity demanded increase, quantity supplied decrease

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