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

Income elasticity of demand — practice question

An eighteenth-century clockmaker produced 12 identical clocks in total. At present, only three collectors of these clocks exist: X, Y and Z. The diagram displays their demand curves. X, Y and Z each begin with 4 clocks. They meet to trade among themselves. At the market clearing price (or equilibrium price), which statement is correct?

  • Abuyer(s): X; seller(s): Y and Z
  • Bbuyer(s): Y and Z; seller(s): X
  • Cbuyer(s): X; seller(s): Z
  • Dbuyer(s): Z; seller(s): X

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