O-LevelEconomicsThe allocation of resources2281/11 · May/June 2024 · Q51 Mark

The diagram shows a shift in the supply curve for New Zealand's airlines from S₁ to S₂. [Diagram of a supply curve shifting right from S1 to S2] What is the most likely cause of this shift?

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.

Adecrease in the costs of New Zealand's airlines

Bdecrease in the number of people wanting to fly to New Zealand

Can increase in the price of train and bus travel in New Zealand

Dan increase in the tax on air travel in New Zealand

✓ Correct answer

A: decrease in the costs of New Zealand's airlines

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2024 Paper 1 Variant 1, question 5.

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