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

Income elasticity of demand — practice question

Domino Pizza reported that its profits had been lowered by price inflation on ingredients and by a decrease in consumers’ disposable income. How would these changes influence 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

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