A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2020 · Q101 Mark
A power station burns waste to produce electricity. This also produces a by-product of fertiliser for farmers. What is the effect in the fertiliser market of an increase in the demand for electricity?
AThe price of fertiliser falls and the quantity demanded rises.
BThe price of fertiliser falls and the quantity supplied falls.
CThe price of fertiliser rises and the quantity demanded falls.
DThe price of fertiliser rises and the quantity supplied rises.
✓ Correct answer
A: The price of fertiliser falls and the quantity demanded rises.
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