O-LevelEconomicsThe allocation of resources2281/12 · May/June 2020 · Q61 Mark

The diagrams show the supply curve for an individual grower of tomatoes and for the total market supply of tomatoes. What explains the similarity of the two curves? [Figure 6.1]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

AAs costs rise growers need to get a higher price to increase output.

BAt the lower prices each grower supplies more tomatoes.

CThe profitability per unit is the same for all growers irrespective of output.

DSupply is not always influenced by price.

✓ Correct answer

A: As costs rise growers need to get a higher price to increase output.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2020 Paper 1 Variant 2, question 6.

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