The table below shows the income elasticity of demand (YED) for three different consumer products during a period of economic transition.
| Product | Income Elasticity of Demand (YED) |
|---|---|
| Organic Foods | +1.8 |
| Public Transport | -0.6 |
| Discount Supermarket Brands | -1.4 |
If the economy enters a recession causing average consumer incomes to fall, which of the following is a correct conclusion?
There will be a more than proportionate increase in the demand for Discount Supermarket Brands.
There will be a less than proportionate decrease in the demand for Organic Foods.
Only the demand for Public Transport will increase.
The demand for all three products will fall.
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.