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Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 10

9708Demand and supply curves

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?

  1. Aa rise in the price of pasta and rice
  2. Ba decrease in the real income of consumers
  3. Ca recession and rising unemployment
  4. 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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