Economics (AS & A Level) · May / June 2024 · Paper 13 · Question 7

A company uses large amounts of gas to produce steel. Supplies of gas are reduced at the same time as the market for steel is hit by a recession. What can be said about the likely changes in the market for steel?

1. Aequilibrium price falls, equilibrium quantity uncertain
2. Bequilibrium price rises, equilibrium quantity uncertain
3. Cequilibrium price uncertain, equilibrium quantity falls
4. Dequilibrium price uncertain, equilibrium quantity rises

As printed in the paper