The line RS in the diagram shows the different combinations of goods X and Y that a consumer can afford with her present income. [Figure: Diagram showing quantity of Y on y-axis, quantity of X on x-axis, a downward sloping line RS, and points N and M on the line.] The consumer's original equilibrium is at M. What could explain a subsequent change in her equilibrium position to N? A a change in her tastes B an increase in the price of X and a fall in the price of Y C an increase in the price of X and a smaller percentage increase in the price of Y D equal percentage increases in her income and in both prices
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.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] Choice B is correct
Write your answer and get it marked
On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.
Sign up free →