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

Income elasticity of demand — practice question

The diagram illustrates the market for a luxury smartphone brand. The starting equilibrium is at point X. What is the new equilibrium after the price of batteries used by the smartphone manufacturer rises and consumer incomes increase?

  • Ashift to A
  • Bshift to B
  • Cshift to C
  • Dshift to return to X (no change)

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