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

Income elasticity of demand — practice question

The diagram illustrates the supply curve of coffee in an economy. The market equilibrium begins at point X, but a change causes it to shift to point Y. What could account for this?

  • Aan increase in wages paid by producers of coffee
  • Ba switch in consumer tastes from coffee to tea
  • Can increase in the price of tea
  • Da tax imposed on coffee producers

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