A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2025 · Q41 Mark
The price of a good rises by 5% and the quantity of it demanded rises by 3%. At the same time, the incomes of consumers of the good rise by 4%. The law of demand appears not to be working in this case. What is the most likely explanation?
AOther things did not remain equal.
BThe demand for the good was price inelastic.
CThe real price of the good fell.
DThe time period was the very short run.
✓ Correct answer
A: Other things did not remain equal.
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