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

Income elasticity of demand — practice question

The diagram depicts the market for electric steel-plated switches used in newly built houses. Which factor would not have been able to cause the market equilibrium position to move from X to Y?

  • Aincreasing the availability of loans for buying houses
  • Bgranting a subsidy for producers of bricks
  • Cremoving sales tax on electric switches
  • Dremoving tariffs on imports of wood

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