Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 8
9708The interaction of demand and supply
The diagram shows the market demand for and supply of a good. Which statement is not valid?
- AAt price OP1, UV represents the market surplus.
- BAt price OP3, P3X represents the quantity that consumers are able and willing to buy.
- CIf price were to fall from OP1 to OP3, the extra quantity demanded would be equal to the extra quantity supplied.
- DPrice OP2 is the market equilibrium price.
As printed in the paper
Show the answer
Correct answer: C. If price were to fall from OP1 to OP3, the extra quantity demanded would be equal to the extra quantity supplied.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.