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

Income elasticity of demand — practice question

Domino Pizza stated that its profits had fallen because ingredient prices had risen and consumers’ disposable income had declined. How would these changes affect the demand and supply curve for its products?

  • Ademand move to the left; supply move to the left
  • Bdemand move to the left; supply move to the right
  • Cdemand move to the right; supply move to the left
  • Ddemand move to the right; supply move to the right

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