A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2015 · Q111 Mark
In a particular year, 12000 units of a good are sold at $1 per unit. In a later year, 14000 units are sold at $1.20 per unit. If consumer tastes have remained constant, what could account for the change between the two years?
Adecrease 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
✓ Correct answer
B: an increase in the price of a substitute good
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →