A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2023 · Q101 Mark
In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The initial equilibrium is at point X. The exchange rate has depreciated at the same time as the price of a complementary good decreased. Which point in the diagram could represent the new equilibrium?
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.
AA
BB
CC
DD
✓ Correct answer
B: B
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