A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2017 · Q101 Mark
The diagram shows the market for new houses. [Diagram] What would cause the change in the market equilibrium position from X to Y?
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.
Afall in income tax and a rise in building costs
Bfall in interest rates and increased efficiency in house-building
Cfall in population and a rise in the price of building land
Drise in building subsidies and a fall in incomes
✓ Correct answer
A: fall in income tax and a rise in building costs
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