A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2021 · Q111 Mark
The diagrams show the initial demand curve D₁ and supply curve S₁ for steel in the European Union (EU). In 2018 European steel firms experienced rising energy prices. Which diagram shows the likely impact of this?
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ADemand curve shifts left (D1 to D2) and supply curve shifts left (S1 to S2)
BDemand curve shifts right (D1 to D2) and supply curve shifts right (S1 to S2)
CSupply curve shifts left (S1 to S2) with demand curve (D1) unchanged
DSupply curve shifts right (S1 to S2) with demand curve (D1) unchanged
✓ Correct answer
D: Supply curve shifts right (S1 to S2) with demand curve (D1) unchanged
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