O-LevelEconomicsThe allocation of resources2281/11 · Oct/Nov 2010 · Q71 Mark

Which statement could explain a decrease in the demand for natural rubber?

ADemand for car tyres has increased.

BNew techniques of producing substitutes for rubber have been introduced.

CProductivity of rubber plantations has increased.

DThe area of land on which rubber is grown has increased.

✓ Correct answer

B: New techniques of producing substitutes for rubber have been introduced.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2010 Paper 1 Variant 1, question 7.

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