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Economics · May / June 2026 · Paper 12 · Question 6

2281Supply

The diagram shows the supply curve for a good. What causes an extension in the supply of the good?

  1. Aa decrease in the cost of producing the good
  2. Ba decrease in the price of the good
  3. Can increase in the cost of producing the good
  4. Dan increase in the price of the good

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Correct answer: D. an increase in the price of the good

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