Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

In the diagram shown, D1 and S1 represent the original demand and supply curves for the US car market. Which change would move the demand curve for cars to D2 and the supply curve for cars to S2?

  • Aa fall in real income and an increase in a unit tax on cars
  • Ba fall in unemployment and the removal of subsidies from the car industry
  • Ca rise in the price of bus fares and a fall in the cost of production of the car industry
  • Da rise in the price of petrol and a fall in the number of firms in the car market

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