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

Income elasticity of demand — practice question

In the diagram, D and S show the demand for smartphones and the supply of smartphones. A high proportion of the components used to manufacture smartphones are imported. The original equilibrium is at point X. The exchange rate has depreciated, while the price of a complementary good has fallen. Which point on the diagram could show the new equilibrium?

  • AA
  • BB
  • CC
  • DD

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI