Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 10
The diagram shows the demand and supply curves for bread in a developed economy. Bread is a substitute for pasta and rice. [diagram: price-quantity axes with demand curves D1 and D2 and supply curve S1] What would cause the demand curve for bread to shift from D1 to D2 in a developed economy?
- Aa rise in the price of pasta and rice
- Ba decrease in the real income of consumers
- Ca recession and rising unemployment
- Da subsidy given to producers of pasta and rice
As printed in the paper
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Correct answer: A. a rise in the price of pasta and rice
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