A major supermarket chain has gathered data on annual sales of fresh milk and the average real income of its customers, as shown in the table below.
| Year | Average litres of fresh milk sold per week | Average real income of customers (2021 prices) |
|---|---|---|
| 2021 | 15,000 | £28,000 |
| 2022 | 15,600 | £30,800 |
These statistics suggest that fresh milk
is a normal good.
is an inferior good.
has an income elasticity of demand greater than 1.
has an income elasticity of demand less than 0.
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.