A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2014 · Q131 Mark
In a market for a good both demand and supply change at the same time. Which combination of changes would enable an economist to predict with confidence that more resources will be needed in its production but not the direction of the associated price change? [Table showing 'demand' and 'supply' changes for options A, B, C, D]
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Ademand decrease, supply decrease
Bdemand decrease, supply increase
Cdemand increase, supply decrease
Ddemand increase, supply increase
✓ Correct answer
D: demand increase, supply increase
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