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

Income elasticity of demand — practice question

In the diagram, S1S1 and DD show the initial supply and demand curves for an agricultural product. Bad weather then cuts supply to S2S2. The government does not permit the price to increase beyond OP1. If the price is kept at OP1, how much of the product must the government provide from stocks?

  • AOQ3
  • BQ1Q3
  • CQ1Q2
  • DQ2Q3

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