A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2017 · Q61 Mark
In 2014, in an attempt to find new uses for seven sites previously used to bury rubbish, the Hong Kong government announced it would allow private companies to bid to redevelop the sites. Which diagram shows the change in the market for these sites?
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.
A[Diagram showing a leftward shift of both the demand and supply curves, leading to a higher equilibrium price and lower equilibrium quantity]
B[Diagram showing a rightward shift of both the demand and supply curves, leading to an ambiguous equilibrium price and higher equilibrium quantity]
C[Diagram showing a rightward shift of both the demand and supply curves, leading to a higher equilibrium price and quantity]
D[Diagram showing a leftward shift of the demand curve and a rightward shift of the supply curve, leading to a lower equilibrium price and ambiguous equilibrium quantity]
✓ Correct answer
A: [Diagram showing a leftward shift of both the demand and supply curves, leading to a higher equilibrium price and lower equilibrium quantity]
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