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Economics · Oct / Nov 2021 · Paper 13 · Question 7

2281Supply

The diagram shows a shift in the supply curve for New Zealand's airlines from S1 to S2. What is the cause of this shift?

  1. Aa decrease in the costs of New Zealand's airlines
  2. Ba decrease in the number of people wanting to fly to New Zealand
  3. Can increase in the price of train and bus travel in New Zealand
  4. Dan increase in the tax on air travel in New Zealand

As printed in the paper

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Correct answer: A. a decrease in the costs of New Zealand's airlines

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