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A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2018 · Q51 Mark

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

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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

  1. [1] Choice B is correct

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Oct/Nov 2018 Paper 3 Variant 1, question 5.

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