The diagram shows the market for cocoa, which is a normal good. Initially the market is in equilibrium with price Pe and quantity Qe bought and sold. [Diagram] Which sequence of events (event 1 followed by event 2) must have occurred in order to move to the new equilibrium at point X?
✓ Correct Answer
The correct answer is D: event 1: a successful advertising campaign by cocoa producers, event 2: an increase in the taxation of cocoa
📋 Examiner Report & Trap Analysis
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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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