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

Income elasticity of demand — practice question

The diagram illustrates the demand and supply curves for the global air cargo market. The starting equilibrium is at point X. What would the revised equilibrium be if a global recession occurs and fuel costs increase?

  • AA (as shown on diagram)
  • BB (as shown on diagram)
  • CC (as shown on diagram)
  • DD (as shown on diagram)

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