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

Income elasticity of demand — practice question

The diagrams show the markets for four different products. In which market would a 10% decrease in demand and, at the same time, a 10% increase in supply certainly lead to both a lower equilibrium price and a higher equilibrium quantity?

  • AMarket A (diagram A)
  • BMarket B (diagram B)
  • CMarket C (diagram C)
  • D[IMAGE:9708_w19_qp_12_p6_diagram_2]

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