A-LevelEconomicsThe price system and the microeconomy9708/32 · Feb/Mar 2019 · Q51 Mark
In the indifference curve diagram point M is the consumer's initial equilibrium, JK and JL are budget lines and MN is the substitution effect of a fall in the price of good X. [Indifference curve diagram showing good Y and good X axes; budget lines JK and JL; indifference curves; points M, N, A, B, C, D labeled]
- If good X is a Giffen good, which point will be the consumer's new equilibrium point after the fall in the price of good X? A B C D[1]
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.
Mark scheme
Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.
- [1] A
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