Economics 0455 · IGCSE · Price determination

Price determination — practice question

The diagram illustrates the market equilibrium $E$ for product $X$. Product $X$ has a demand curve that slopes downwards and a supply curve that slopes upwards. The price of a substitute good decreases. To which area of the diagram will the market equilibrium for product $X$ shift?

  • AA
  • BB
  • CC
  • DD

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