Economics (AS & A Level) · Oct / Nov 2023 · Paper 12 · Question 10

In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The initial equilibrium is at point X. The exchange rate has depreciated at the same time as the price of a complementary good decreased. Which point in the diagram could represent the new equilibrium?

1. AA
2. BB
3. CC
4. DD

As printed in the paper