A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q51 Mark
India is one of the largest producers of tractors in the world. S₁ and D₁ are the original supply and demand curves for Indian tractors. [Figure showing supply and demand curves for tractors. S1 and D1 intersect at P1, Q1. S2 is to the right of S1, intersecting D1 at P2, Q2.] What would cause the supply curve to move to S2?
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Arise in the incomes of Indian farmers
Brise in the price of electricity paid by Indian tractor manufacturers
Crise in the price of tractors produced in the US
Drise in the productivity of workers in Indian tractor factories
✓ Correct answer
D: rise in the productivity of workers in Indian tractor factories
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