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Demand and supply curves

2.1

What the syllabus asks of you

  • effective demand
  • individual and market demand and supply
  • determinants of demand
  • determinants of supply
  • causes of a shift in the demand curve (D)
  • causes of a shift in the supply curve (S)
  • distinction between the shift in the demand or supply curve and the movement along these curves

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67 questions

1May / June 2026 · Paper 11 · Q6
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AIt is downward sloping.
BIt is the same as the aggregate supply curve.
CIt is the sum of all firms’ supply curves for a product.
DIt is the supply of all products within an economy.

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2May / June 2026 · Paper 12 · Q7
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Aan increase in consumer incomes
Ban increase in the cost of raw materials
Can increase in the price of complements
Dan increase in the size of the working population

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3May / June 2026 · Paper 13 · Q6
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Aan increase in incomes
Ba reduction in the price of hairdressing
Can increase in wigs worn by television celebrities
Da reduction in the price of wigs

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4May / June 2026 · Paper 14 · Q8
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Aa fall in the price of electric cookers
Ban increase in a specific tax on electric cookers
Can increase in the number of households
Dan increase in the price of electricity

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5Oct / Nov 2025 · Paper 12 · Q7
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AX-axis: quantity, Y-axis: income
BX-axis: quantity, Y-axis: price
CX-axis: price, Y-axis: income
DX-axis: income, Y-axis: quantity

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6Oct / Nov 2025 · Paper 13 · Q7
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Aadvertising of good X increases sales
Bconsumer incomes rise
Cthe price of good X falls
Dthe prices of other goods fall

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7May / June 2025 · Paper 11 · Q9
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Aa fall in the price of the product
Ba fall in labour costs
Ca rise in the price of the product
Da rise in labour costs

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8May / June 2025 · Paper 12 · Q6
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Aa decrease in real incomes and a rise in the costs of new car production
Ba decrease in the price of petrol and a subsidy on new car production
Can increase in the availability of loans for new car purchases and a specific tax on new cars
Dan increase in the price of train travel and an increase in the number of car producers

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9May / June 2025 · Paper 14 · Q6
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Aboth the horizontal and the vertical axis
Bthe horizontal axis only
Cthe horizontal or the vertical axis but not both
Dthe vertical axis only

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10May / June 2025 · Paper 14 · Q7
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Aa decrease in student fees for universities
Ba decrease in the level of youth unemployment
Can increase in graduate earnings compared with non-graduate earnings
Dhigher A Level grades demanded for university entrance

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11Feb / March 2025 · Paper 12 · Q9
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Achanging weather patterns
Bgovernment policy to promote consumption
Cgrowth in population
Dmore expensive substitutes

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12Oct / Nov 2024 · Paper 11 · Q6
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Aa decrease in the price of raw materials used by producers
Ban increase in the price of a substitute good
Can increase in the rate of tax imposed on producers
Dthe formation of a monopoly in the production of the good

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13Oct / Nov 2024 · Paper 11 · Q9
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Athe number of firms in the industry
Bthe price of the product
Cthe prices of factors of production
Dthe state of technology

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14Oct / Nov 2024 · Paper 11 · Q11
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AThe cost of running the individual's car rises.
BThe individual is banned from driving.
CThe price of public transport rises.
DThe quality of public transport declines.

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15Oct / Nov 2024 · Paper 12 · Q6
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Aan increase in the number of firms in the industry
Ban increase in the number of workers employed
Can increase in the productivity of the workforce
Dan increase in the wage rates paid to workers

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16Oct / Nov 2024 · Paper 12 · Q8
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Aa rise in consumers' incomes
Ba rise in income tax
Ca rise in sales tax
Da rise in the price of a complement

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17Oct / Nov 2024 · Paper 13 · Q6
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AThe demand curve for leather shoes will shift to the left.
BThe demand curve for a substitute for leather shoes will shift to the right.
CThe supply curve for leather shoes will shift to the right.
DThe supply curve for a substitute for leather to make expensive shoes will shift to the right.

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18Oct / Nov 2024 · Paper 13 · Q11
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Ainferior good; income decrease
Binferior good; price decrease
Cnormal good; income decrease
Dnormal good; price decrease

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19May / June 2024 · Paper 11 · Q6
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Aexpenses for the heating system in the cinema
Bpayments charged by movie scriptwriters
Cthe cost of transport to the cinema
Dtaxes on the incomes of cinema operators

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20May / June 2024 · Paper 11 · Q7
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A10 at $20, 10 at $40
B20 at $20, 50 at $40
C30 at $20, 20 at $40
D40 at $20, 20 at $40

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21May / June 2024 · Paper 13 · Q10
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Asupply at different income levels, assuming product prices remain unchanged
Bsupply at different levels of factor prices, assuming product prices remain unchanged
Csupply at different prices, assuming no changes in technology
Dsupply at different time periods, assuming no changes in technology

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22May / June 2024 · Paper 13 · Q11
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AThe costs of running the individual's car fall.
BThe individual is no longer able to drive.
CThe price of public transport falls.
DThe public transport services are reduced.

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23Feb / March 2024 · Paper 12 · Q6
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Ademand that is speculative
Bdemand that is supported by the ability to pay
Cthe relationship between price and quantity demanded
Dthe total amount demanded by consumers

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24Oct / Nov 2023 · Paper 11 · Q13
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Aa decrease in the costs of the materials to make facemask X
Ba decrease in the costs of the materials to make facemask Y
Can increase in the price of facemask X
Dan increase in the price of facemask Y

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25Oct / Nov 2023 · Paper 12 · Q5
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AThere will be a shift of demand and a contraction of supply.
BThere will be a shift of demand and an extension of supply.
CThere will be a shift of supply and a contraction of demand.
DThere will be a shift of supply and an extension of demand.

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26Oct / Nov 2023 · Paper 12 · Q9
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Afruit: no change; furniture producers: shift to the left
Bfruit: shift to the left; furniture producers: no change
Cfruit: shift to the left; furniture producers: shift to the left
Dfruit: shift to the right; furniture producers: no change

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27Oct / Nov 2023 · Paper 12 · Q13
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Athe increasing technological ability to copy famous paintings perfectly
Bthe popular view that famous paintings are an appreciating asset
Cthe totally inelastic supply of famous paintings by dead artists
Dthe wish of governments to treat art galleries as merit goods

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28Oct / Nov 2023 · Paper 13 · Q8
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Agood P: contraction; good Q: extension
Bgood P: contraction; good Q: shift to right
Cgood P: shift to left; good Q: shift to left
Dgood P: shift to left; good Q: shift to right

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29Oct / Nov 2023 · Paper 13 · Q9
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Amarket change: upward movement along the demand curve; price change: price decreases
Bmarket change: downward movement along the demand curve; price change: price increases
Cmarket change: supply shifts to the left; price change: price increases
Dmarket change: supply shifts to the left; price change: price decreases

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30Oct / Nov 2023 · Paper 32 · Q14
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Ajourneys from point X to point Z
Bjourneys from point X to point Y
Cjourneys from point Y to point Z
Djourneys from point Z to point Y

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31May / June 2023 · Paper 12 · Q9
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Ainferior, fall
Binferior, rise
Cnormal, fall
Dnormal, rise

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32May / June 2023 · Paper 13 · Q6
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Aa change in the price of the rice
Ba change in the price of meat
Ca change in the size of the rice industry
Da change in tastes and preferences for rice

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33May / June 2023 · Paper 13 · Q8
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Aa change in the price of a complement
Ba change in the price of a substitute
Ca change in the price of the good itself
Da change in consumers' incomes

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34Feb / March 2023 · Paper 12 · Q5
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A$1 to $2
B$1 to $3
C$1 to $4
D$1 to $5

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35Feb / March 2023 · Paper 12 · Q9
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AIt shows an inverse relationship between income and quantity demanded.
BIt shows an inverse relationship between the price of the good and quantity demanded.
CIt shows a positive relationship between the price of the good and quantity demanded.
DIt shows a positive relationship between income and quantity demanded.

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36Oct / Nov 2022 · Paper 11 · Q5
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Awhen the price of cars falls
Bwhen the price of motorcycles falls
Cwhen the tax on motorcycles rises
Dwhen the price of public transport rises

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37Oct / Nov 2022 · Paper 11 · Q6
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Aconsumer incomes
Bexpectations about future house prices
Cthe price of houses
Dthe rate of interest charged on loans for house purchase

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38Oct / Nov 2022 · Paper 11 · Q9
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Aa change in the car producers' costs of production
Ba change in the price of fuel used by car owners
Ca change in the rate of sales tax on cars
Da change in the wage rate of workers in the car industry

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39Oct / Nov 2022 · Paper 12 · Q13
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Aa change in incomes of potential customers
Ba change in price of tickets to the concerts
Ca change in rents charged by venue owners
Da change in seating capacity of concert venues

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40May / June 2022 · Paper 11 · Q7
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ADiagram A
BDiagram B
CDiagram C
DDiagram D

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41May / June 2022 · Paper 11 · Q15
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Areduce | increase
Breduce | no change
Cno change | increase
Dno change | no change

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42May / June 2022 · Paper 12 · Q8
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Aa leftward shift in the good's demand curve, as increased advertising cost raises the price of the product and reduces its demand
Ba rightward shift in the good's supply curve, as the advertising cost of the firm increases
Ca rightward shift in the good's demand curve, as successful advertising increases demand
Da leftward shift in the good's supply curve, as successful advertising enables firms to sell more

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43May / June 2022 · Paper 12 · Q11
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Aa decrease in consumer incomes and an increase in the price of a substitute good
Ba decrease in consumer incomes and an increase in the price of the good
Can increase in consumer incomes and an increase in the price of a substitute good
Dan increase in consumer incomes and an increase in the price of the good

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44May / June 2022 · Paper 13 · Q7
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Aa fall in the price of sugar
Ba removal of a subsidy on sugar
Can increase in consumer income
Dan increase of a specific tax on sugar

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45May / June 2022 · Paper 14 · Q6
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Aa consumer's income
Ba consumer's tastes
Ca change in the price of the product
Da fall in the tax on goods and services

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46Feb / March 2022 · Paper 12 · Q5
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AAn increase in the demand for chicken will bring about a rise in supply.
BFarmers’ productivity rises as the price rises.
CIncreased production leads to a reduction in costs.
DThe cost of additional chicken production rises as output increases.

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47Feb / March 2022 · Paper 12 · Q7
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Athe consumer's income
Bthe consumer's tastes and preferences
Cthe price of fresh fruit
Dthe price of ice cream

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48Feb / March 2022 · Paper 12 · Q11
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AConsumers spend a high proportion of disposable income on the good.
BThe price of a complementary good has also increased.
CThe price of the good is taken to be an indication of the level of quality.
DThe substitute goods are all very much more expensive.

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49Feb / March 2022 · Paper 12 · Q12
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Aa decrease in consumer incomes
Ba decrease in income tax
Ca decrease in the price of a substitute good
Da decrease in the price of the good

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50Oct / Nov 2021 · Paper 11 · Q5
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ADemand for fresh fish increases due to promotion of the health benefits.
BFavourable weather increases the quantity of fish being caught.
CPrice of fresh fish falls due to a new substitute product becoming popular.
DRegulations limit the number of fish being caught to prevent over-fishing.

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51Oct / Nov 2021 · Paper 12 · Q6
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Aa change in demand for good X; an increase in the price of a substitute good
Ba decrease in factor productivity; the imposition of a tax on good X
Can increase in the price of a complementary good; an increase in factor productivity
Dan increase in the wage rates in the industry; a change in demand for good X

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52Oct / Nov 2021 · Paper 12 · Q9
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ADiagram A: price of fuel vs quantity of fuel, demand shifts from D1 to D2 (rightward), supply S upward sloping, price rises from P1 to P2, quantity rises from Q1 to Q2
BDiagram B: price of fuel vs quantity of fuel, horizontal supply S at price P, demand shifts from D1 to D2 (rightward), quantity rises from Q1 to Q2
CDiagram C: price of fuel vs quantity of fuel, demand shifts from D1 to D2 (rightward), supply S upward sloping, price falls from P1 to P2, quantity rises from Q1 to Q2
DDiagram D: price of fuel vs quantity of fuel, supply shifts from S1 to S2 (rightward), demand D downward sloping, price falls from P1 to P2, quantity rises from Q1 to Q2

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53Oct / Nov 2021 · Paper 12 · Q10
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Aa rise in the price of pasta and rice
Ba decrease in the real income of consumers
Ca recession and rising unemployment
Da subsidy given to producers of pasta and rice

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54Oct / Nov 2021 · Paper 13 · Q7
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Aa continuous rise in the price of tea between 1997 and 2001
Bthe entry to the market of new producers of coffee between 1997 and 2001
Ca series of good coffee harvests between 2001 and 2005
Dincreasing health worries about drinking coffee between 2001 and 2005

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55Oct / Nov 2021 · Paper 13 · Q8
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Aan increase in the cost of producing the product
Ban increase in the income of consumers of the product
Can increase in the demand for a product that is jointly supplied
Dan increase in the price of the product

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56Oct / Nov 2021 · Paper 32 · Q9
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AIt will shift to the left at any given price.
BIt will shift to the right at any given price.
CThere will be a downward movement along the supply curve.
DThere will be an upward movement along the supply curve.

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57May / June 2021 · Paper 11 · Q5
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Aan increase in firms’ unit labour costs
Ban increase in the number of firms in the industry
Can increase in the price of the good
Dan indirect tax imposed on the good

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58May / June 2021 · Paper 11 · Q7
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AThe consumer must have the ability to buy the product.
BThe consumer must receive consumer surplus.
CThe good must be sold in the private sector of the economy.
DThere must be a successful advertising campaign.

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59May / June 2021 · Paper 11 · Q13
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Afirst statement correct; second statement correct
Bfirst statement correct; second statement incorrect
Cfirst statement incorrect; second statement correct
Dfirst statement incorrect; second statement incorrect

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60May / June 2021 · Paper 12 · Q7
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Aa rise in the cost of transporting goods
Ba rise in the productivity of the labour force
Ca rise in the rate of sales tax on the good
Da rise in the wage rate paid to workers

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61May / June 2021 · Paper 12 · Q12
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Aby adding consumer surplus to total expenditure
Bby combining individual demand curves horizontally
Cby combining the price elasticity of individual demands
Dby multiplying price by quantity demanded

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62May / June 2021 · Paper 13 · Q6
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Aa change in technology
Ba rise in the price of a factor input
Ca rise in the price of the commodity
Dthe introduction of a specific tax on the commodity

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63May / June 2021 · Paper 13 · Q11
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Aincomes down, interest rates unchanged, wages of bricklayers up
Bincomes down, interest rates up, wages of bricklayers unchanged
Cincomes unchanged, interest rates up, wages of bricklayers down
Dincomes up, interest rates down, wages of bricklayers unchanged

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64May / June 2021 · Paper 13 · Q13
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Aincrease by 5000
Bno change
Cdecrease by 5000
Ddecrease by 15 000

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65Feb / March 2021 · Paper 12 · Q5
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Aa change in advertising expenditure on Z
Ba change in the individual's income
Ca change in the individual's tastes
Da change in the price of Z

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66Feb / March 2021 · Paper 12 · Q9
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Asupply of leather belts decreases; price of artificial belts decreases
Bsupply of leather belts decreases; price of artificial belts increases
Csupply of leather belts increases; price of artificial belts decreases
Dsupply of leather belts increases; price of artificial belts increases

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67Feb / March 2021 · Paper 12 · Q11
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ADiagram A
BDiagram B
CDiagram C
DDiagram D

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