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

Income elasticity of demand — practice question

A product has a normal demand curve and a normal supply curve. What could account for an increase in the product's price and a decrease in the quantity traded of the product?

  • AThe decrease in demand is double the decrease in supply.
  • BThe decrease in supply is double the decrease in demand.
  • CThe increase in demand is double the increase in supply.
  • DThe increase in supply is double the increase in demand.

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