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Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 6

9708Demand and supply curves

What could cause a shift in the supply curve of good X and a movement along its supply curve?

  1. Aa change in demand for good X; an increase in the price of a substitute good
  2. Ba decrease in factor productivity; the imposition of a tax on good X
  3. Can increase in the price of a complementary good; an increase in factor productivity
  4. Dan increase in the wage rates in the industry; a change in demand for good X

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Correct answer: D. an increase in the wage rates in the industry; a change in demand for good X

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