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

Income elasticity of demand — practice question

Good P and good Q function as substitutes. The supply of good P falls because of a shortage of materials. Which row shows what will happen to demand?

  • Agood P: contraction; good Q: extension
  • Bgood P: contraction; good Q: shift to right
  • Cgood P: shift to left; good Q: shift to left
  • Dgood P: shift to left; good Q: shift to right

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