Economics (AS & A Level) · Oct / Nov 2024 · Paper 12 · Question 11
9708The interaction of demand and supply
Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibrium price of good X remain unchanged?
- AProducers of good X adopt new technology.
- BProducers of good X receive a subsidy.
- CSome firms stop production of good X.
- DThe tax on the production of good X is cut.
As printed in the paper
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Correct answer: C. Some firms stop production of good X.
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