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

Income elasticity of demand — practice question

The diagram illustrates the demand curve and supply curve for broken rice, which is regarded as an inferior good. The market is initially at equilibrium at point X, where the price is P₁ and the quantity is Q₁. Which point shows the new equilibrium if household incomes rise?

    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