A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2020 · Q81 Mark
Vanilla is an important ingredient in the production of ice cream. Between 2011 and 2018 the price of vanilla increased from about US100 per kg to nearly US600 per kg. The diagram shows the market demand for and supply of ice cream. The original equilibrium is X. Which point illustrates the effect of this price rise on the market for ice cream?
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.
APoint A
BPoint B
CPoint C
DPoint D
✓ Correct answer
C: Point C
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