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

Income elasticity of demand — practice question

The diagram illustrates two demand curves and two supply curves. The starting equilibrium is at H and the later point is K. Which combinations of changes in demand and supply would produce a movement from H to K?

  • Aan increase in demand and an increase in supply
  • Ban increase in demand and a decrease in supply
  • Ca decrease in demand and an increase in supply
  • Da decrease in demand and a decrease in supply

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