Economics 0455 · IGCSE · Price changes

Price changes — practice question

The global price of cocoa has been decreasing, whereas the prices of goods produced from cocoa have been increasing. Which combination could account for this?

  • Amarket for cocoa: excess demand; advertising expenditure on products made from cocoa: decrease
  • Bmarket for cocoa: excess supply; advertising expenditure on products made from cocoa: decrease
  • Cmarket for cocoa: excess demand; advertising expenditure on products made from cocoa: increase
  • Dmarket for cocoa: excess supply; advertising expenditure on products made from cocoa: increase

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI