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Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 10

9708The interaction of demand and supply

The table shows the supply and demand for avocados in kilograms (kg). | price per kg ($) | quantity demanded per day (kg) | quantity supplied per day (kg) | |---|---|---| | 45 | 170 | 230 | | 40 | 190 | 190 | | 35 | 210 | 150 | | 30 | 230 | 110 | As a result of lower transport costs, supply rises by 60 kg at all prices. What is the new equilibrium price?

  1. A$45
  2. B$40
  3. C$35
  4. D$30

As printed in the paper

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Correct answer: C. $35

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