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

Income elasticity of demand — practice question

When demand for a good decreases, its price decreases. What is the purpose of the price decrease?

  • Ato eliminate shortages
  • Bto reduce consumer surplus
  • Cto send a signal to producers
  • Dto stimulate a further fall in demand

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI