Mark Scheme

Defines income elasticity of demand - up to 2 marks
Explains at least two effects in detail - up to 3 marks each
Effects include - mortgages and incomes are related, incomes affect demand which will therefore influence price, as incomes rise house prices are likely to rise, Due to income elasticity of demand as incomes rise more will be demanded
Credit will be given for relevant diagrams - up to 3 marks