O-LevelEconomicsThe allocation of resources2281/12 · May/June 2022 · Q81 Mark

The table shows the demand and supply schedules for rice. The current price is $2.00 per kilo. [Table] What will happen if the price is reduced to $1.00 per kilo?

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AThe demand schedule will shift to the left.

BThe market will move from shortage to surplus.

CThe market will move from surplus to shortage.

DThe supply schedule will shift to the right.

✓ Correct answer

C: The market will move from surplus to shortage.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2022 Paper 1 Variant 2, question 8.

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