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

Income elasticity of demand — practice question

As the demand for a good decreases, its costs of production also decline. What is the overall impact of these changes on the price of the good and on the quantity supplied?

  • Aprice decrease; quantity supplied decrease
  • Bprice decrease; quantity supplied uncertain
  • Cprice uncertain; quantity supplied decrease
  • Dprice uncertain; quantity supplied uncertain

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