O-LevelEconomicsThe allocation of resources2281/12 · May/June 2023 · Q51 Mark
Good X is demanded in two areas, Y and Z. The table shows the amount of X demanded in these areas at different prices. [Table showing 'price of good X (US)' vs 'quantity demanded per month' for 'area Y' and 'area Z'. Data: 5 US (area Y: 1000, area Z: 200), 10 US$ (area Y: 800, area Z: 150), 15 US$ (area Y: 600, area Z: 100), 20 US$ (area Y: 400, area Z: 50), 25 US$ (area Y: 200, area Z: 0)]. What can be concluded from the table?
AConsumers in area Y are more willing and able than consumers in area Z to buy good X.
BConsumers in area Y are richer than consumers in area Z.
CConsumers in area Y want the good more than consumers in area Z.
DThere are more consumers living in area Y than in area Z.
✓ Correct answer
A: Consumers in area Y are more willing and able than consumers in area Z to buy good X.
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