A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2025 · Q61 Mark
D₁ and S₁ are the initial demand and supply curves in the market for new cars with an equilibrium at X. [Figure 6.1] What will cause the demand curve to shift to D₂ and the supply curve to shift to S₂?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Adecrease in real incomes and a rise in the costs of new car production
Bdecrease 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
✓ Correct answer
C: an increase in the availability of loans for new car purchases and a specific tax on new cars
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