A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q71 Mark

In a free market in disequilibrium, which combination of price and quantity will lead to a fall in price and a contraction in output to reach equilibrium? [Figure showing supply S and demand D curves, with prices P1, P2, P3 and quantities Q1, Q2, Q3]

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AP1Q1

BP1Q3

CP3Q1

DP3Q3

✓ Correct answer

B: P1Q3

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2011 Paper 1 Variant 2, question 7.

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In a free market in disequilibrium, which combination of price and quantity will lead to a fall in price and a contraction in output to reach equilibrium? [Figure showing supply S and demand D curves, with prices P1, P2, P3 and quantities Q1, Q2, Q3]

✓ Correct answer

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