A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q111 Mark
During a certain period, 10000 units of a normal good are sold at a price of US20. During a later period, 12000 units are sold at a price of US22. What could explain this change?
Aan increase in indirect taxation
Ban increase in the cost of raw materials
Can increase in the price of a substitute commodity
Dan increase in the productivity of factors of production
✓ Correct answer
C: an increase in the price of a substitute commodity
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