Economics 9708 · AS & A Level · 6.3

6.3 — practice question

The diagram illustrates a country's domestic supply and demand for a commodity that it both uses and exports. The world price moves from WP1 to WP2. What changes occur in domestic consumption and exports as a result?

  • Adomestic consumption: OX to OZ; quantity of exports: OY to OX
  • Bdomestic consumption: OX to OZ; quantity of exports: OY to OZ
  • Cdomestic consumption: OY to OW; quantity of exports: YX to WZ
  • Ddomestic consumption: OY to OW; quantity of exports: YX to OZ

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