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Economics (AS & A Level) · Oct / Nov 2023 · Paper 12 · Question 5

9708Demand and supply curves

Rice and pasta are both basic foods in a country. How would a health scare concerning rice affect the market for pasta?

  1. AThere will be a shift of demand and a contraction of supply.
  2. BThere will be a shift of demand and an extension of supply.
  3. CThere will be a shift of supply and a contraction of demand.
  4. DThere will be a shift of supply and an extension of demand.

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Correct answer: B. There will be a shift of demand and an extension of supply.

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