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

Income elasticity of demand — practice question

(a)[8]

Using diagrams, explain what might lead to a market being in disequilibrium, and how market forces would bring equilibrium back.

(b)[12]

Discuss whether the incidence of an indirect tax on a product is always more significant for its consumers than for its producers.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: By drawing a diagram to illustrate market equilibrium

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