A-LevelEconomicsDemand and SupplyMay/June 2025Paper 1 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?
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
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The correct answer is C. This question tests the candidate's understanding of demand and supply within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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