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

Income elasticity of demand — practice question

An industry that makes textbooks and operates in a competitive market experiences a rise in demand for its product. Which diagram shows the short-run effect of this rise in demand on the industry?

  • Adiagram A (D1 D2 to the right of S)
  • B[IMAGE:9708_w15_qp_11_p5_diagram_2]
  • C[IMAGE:9708_w15_qp_11_p5_diagram_4]
  • D[IMAGE:9708_w15_qp_11_p5_diagram_3]

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