Economics 0455 · IGCSE · Demand

Demand — practice question

Many people eat biscuits while having a cup of tea. From 2010 to 2015, demand for sweet biscuits declined because of health warnings concerning high sugar consumption. As a consequence, sales of tea also dropped. How would this be represented on demand and supply diagrams for biscuits and tea?

  • Abiscuits: demand curve moves to left; tea: demand curve moves to left
  • Bbiscuits: demand curve moves to right; tea: demand curve moves to right
  • Cbiscuits: movement down along the demand curve; tea: demand curve moves to right
  • Dbiscuits: movement up along the demand curve; tea: demand curve moves to left

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