O-LevelEconomicsThe allocation of resources2281/13 · Oct/Nov 2024 · Q41 Mark

The world price of cocoa has been falling while the prices of products made from cocoa have been rising. Which combination might explain this? [Table 4.1 showing market for cocoa and advertising expenditure on products made from cocoa]

Aexcess demand, decrease

Bexcess supply, decrease

Cexcess demand, increase

Dexcess supply, increase

✓ Correct answer

D: excess supply, increase

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2024 Paper 1 Variant 3, question 4.

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