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

Income elasticity of demand — practice question

The diagram illustrates demand and supply for bread made from wheat, and X marks the initial equilibrium point. Where will the new equilibrium be after subsidies to the wheat industry are removed and advertising promoting the advantages of a wheat-free diet is successful?

  • Apoint A
  • Bpoint B
  • Cpoint C
  • Dpoint D

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI