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

Income elasticity of demand — practice question

A product’s market is originally at equilibrium. Which pairing of changes would make the product’s price increase while the quantity sold decreases?

  • Aa decrease in demand that is larger than a decrease in supply
  • Ba decrease in demand that is smaller than a decrease in supply
  • Can increase in demand that is larger than an increase in supply
  • Dan increase in demand that is smaller than an increase in supply

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