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

Income elasticity of demand — practice question

The diagram illustrates a market for a good that is provided partly by domestic production and partly through imports. Sh denotes domestic supply and Sm denotes imports. What will be the level of consumption and the corresponding quantity of imports?

  • Aconsumption OT / quantity of imports RT
  • Bconsumption OT / quantity of imports OT
  • Cconsumption OV / quantity of imports RT
  • Dconsumption OV / quantity of imports RV

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