Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 6

In a particular year, 12 000 units of a good are sold at $1 per unit. In a later year, 14 000 units are sold at $1.20 per unit. If consumer tastes have remained constant, what could account for the change between the two years?

1. Aa decrease in the price of raw materials used by producers
2. Ban increase in the price of a substitute good
3. Can increase in the rate of tax imposed on producers
4. Dthe formation of a monopoly in the production of the good

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