Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 7
9708The interaction of demand and supply
The table shows a competitive market in equilibrium in two periods. [table: period | market price (cents) | quantity traded; 1 | 50 | 10 000; 2 | 60 | 12 000] What could explain the change from period 1 to period 2?
- Aan increase in the price of a complement
- Ban increase in the price of a substitute
- Cthe imposition of a minimum price of 60 cents by a government
- Dthe imposition of an indirect tax on suppliers
As printed in the paper
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Correct answer: B. an increase in the price of a substitute
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