The table below shows the income elasticity of demand (YED) for three different goods, P, Q and R.
| Good | Income elasticity of demand |
|---|---|
| P | -1.2 |
| Q | +1.5 |
| R | +0.4 |
From the data in the table, it can be concluded that a rise in consumer incomes will result in:
a decrease in demand for Good P only.
a fall in demand for all three goods.
a more than proportionate increase in demand for Good R.
a less than proportionate increase in demand for Good Q.
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.