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

Income elasticity of demand — practice question

What could account for price and quantity traded both rising at the same time in the market for a normal good?

  • Athe removal of an effective maximum price on the good
  • Btechnological progress in the production of the good
  • Cthe imposition of a tax on the good
  • Dthe granting of a subsidy to producers of the good

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