A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2012 · Q111 Mark
The diagrams show a change in demand from D₁ to D₂ and a change in supply from S₁ to S₂ for four different goods. [Figure 11.1] Which diagram illustrates the good for which additional new uses have been found and which receives an increase in government subsidy?
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.
ADemand increases, supply decreases.
BDemand increases, supply decreases.
CDemand decreases, supply increases.
DDemand increases, supply increases.
✓ Correct answer
C: Demand decreases, supply increases.
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