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Economics · Oct / Nov 2021 · Paper 12 · Question 7

2281Supply

An economy relies on potash to make fertiliser. A new deposit of potash is discovered. Which diagram shows this change in the market for potash?

  1. Aprice/quantity diagram with S1, D1, D2 (demand shifts right)
  2. Bprice/quantity diagram with S1, D2, D1 (demand shifts left)
  3. Cprice/quantity diagram with S2, D1, S1 (supply shifts right)
  4. Dprice/quantity diagram with S1, D1, S2 (supply shifts left)

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Correct answer: D. price/quantity diagram with S1, D1, S2 (supply shifts left)

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