A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2019 · Q121 Mark
The diagram shows the market for a normal good. What is likely to cause both demand and supply curves to shift to the right? [Figure 12]
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.
Afall in the price of the good and a fall in the rate of indirect tax on the good
Brise in the price of a complementary good and an increase in the number of firms in the industry
Crise in the price of a substitute good and a fall in the price of a raw material used in the production of the good
Dan improvement in production techniques and a fall in the incomes of consumers
✓ Correct answer
C: rise in the price of a substitute good and a fall in the price of a raw material used in the production of the good
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