The table below shows estimates of the income elasticity of demand (YED) for four different consumer goods and services in a region.
| Goods / Services | Income elasticity of demand |
|---|---|
| Streaming subscriptions | 0.5 |
| Casual dining | 1.0 |
| Organic groceries | 1.5 |
| Fine dining | 2.5 |
From the data, it may be concluded that a 10% rise in real incomes would lead to
a fall in demand for streaming subscriptions.
no change in demand for casual dining.
a 15% increase in demand for organic groceries.
a 2.5% increase in demand for fine dining.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.