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

Income elasticity of demand — practice question

Rice and pasta are both staple foods in a country. In what way would a health scare about rice influence the market for pasta?

  • AThere will be a shift of demand and a contraction of supply.
  • BThere will be a shift of demand and an extension of supply.
  • CThere will be a shift of supply and a contraction of demand.
  • DThere will be a shift of supply and an extension of demand.

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