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

Income elasticity of demand — practice question

The diagram illustrates the market for pineapples. X marks the initial equilibrium point. Pineapple producers gain from better technology. Meanwhile, a new diet book claims that eating pineapples aids weight loss. Which point shows the new equilibrium?

  • AA
  • BB
  • CC
  • DD

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