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

Income elasticity of demand — practice question

The prices of gold, silver and copper dropped sharply in 2011 and then once more in 2015. The decline in 2011 was attributed to miners raising output. The decline in 2015 was due to demand, particularly from China, falling. If the equilibrium prior to 2011 was X, how would these changes in 2011 and then in 2015 be represented on the demand and supply diagram?

  • AInitial X, 2011 Q, 2015 R
  • BInitial X, 2011 R, 2015 Q
  • CInitial X, 2011 S, 2015 R
  • DInitial X, 2011 T, 2015 S

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