Economics · May / June 2022 · Paper 12 · Question 8

The table shows the demand and supply schedules for rice. The current price is $2.00 per kilo. | price per kilo $ | quantity demanded (million tonnes) | quantity supplied (million tonnes) | |---|---|---| | 2.50 | 5 | 30 | | 2.00 | 10 | 25 | | 1.50 | 20 | 20 | | 1.00 | 30 | 15 | | 0.50 | 40 | 10 | What will happen if the price is reduced to $1.00 per kilo?

1. AThe demand schedule will shift to the left.
2. BThe market will move from shortage to surplus.
3. CThe market will move from surplus to shortage.
4. DThe supply schedule will shift to the right.

As printed in the paper