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O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2022 · Q51 Mark

Workers are awarded a pay rise but do not increase their productivity. Workers do not buy the product that they produce. How would this change be shown on a demand and supply diagram for the product?

AThe demand curve will shift to the left.
BThe demand curve will shift to the right.
CThe supply curve will shift to the left.
DThe supply curve will shift to the right.

✓ Correct answer

C: The supply curve will shift to the left.

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About this question

Topic
The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2022 Paper 1 Variant 2, question 5.

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