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

Income elasticity of demand — practice question

A shift in market conditions reduces supply. As a consequence, the product’s price rises, and demand for it is shown by a downward-sloping demand curve. What will be the result of this higher price?

  • Aan increase in the factors employed in the industry
  • Ban increase in producer’s revenue
  • Ca reduction in the quantity demanded
  • Da reduction in the demand for substitutes

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