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A-LevelEconomicsDemand and SupplyOct/Nov 2017Paper 1 Q91 Mark

Prices of gold, silver and copper fell considerably in 2011 and again in 2015. The fall in 2011 was said to be because miners increased production. The fall in 2015 was because demand, especially from China, decreased. Assuming that the equilibrium before 2011 was X, how would these movements in 2011 and subsequently in 2015 be shown on the demand and supply diagram? [Figure showing price and quantity axes with points X, T, S, R, Q and demand/supply curves] [Table mapping initial equilibrium, 2011 equilibrium, 2015 equilibrium to points A, B, C, D]

AX Q R
BX R Q
CX S R
DX T S

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The correct answer is A. This question tests the candidate's understanding of demand and supply within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2017 examination, Paper 1 Variant 2. It tests the topic of Demand and Supply and is worth 1 mark.

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