An organic grocery chain has estimated the income elasticity of demand (YEDYEDYED) for several of its specialty product categories, as shown in the table below:
| Product Category | Income elasticity of demand (YEDYEDYED) |
|---|---|
| Artisanal Cheese | 1.25 |
| Organic Honey | 0.75 |
| Free-Range Eggs | 0.60 |
| Whole Milk | 0.35 |
If average household incomes increase by 8%, for which of these product categories will the quantity demanded increase by more than 5%?
Artisanal Cheese only
Artisanal Cheese and Organic Honey
Artisanal Cheese, Organic Honey, and Free-Range Eggs
Organic Honey and Free-Range Eggs
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.