A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2019 · Q111 Mark
The diagram shows the market demand and supply for a good. Which statement is not valid?
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.
AAt price OP₁, UV represents the market surplus.
BAt price OP3, P3X represents the quantity that consumers would like to buy.
CIf price were to fall from OP₁ to OP3, the extra quantity demanded would be equal to the extra quantity supplied.
DPrice OP2 is the market equilibrium price.
✓ Correct answer
C: If price were to fall from OP₁ to OP3, the extra quantity demanded would be equal to the extra quantity supplied.
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