A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q101 Mark
The diagram shows the market for new houses. [Figure showing supply S1, S2 and demand D1, D2 curves, with price and quantity axes, and points X and Y] What would cause the change in the market equilibrium position from X to Y?
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.
Afall in income tax and a rise in building costs
Bfall in interest rates and increased efficiency in house-building
Cfall in population and a rise in taxes on building materials
Drise in building subsidies and a fall in incomes
✓ Correct answer
A: fall in income tax and a rise in building costs
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