Economics 0455 · IGCSE · Price determination

Price determination — practice question

In 2011, China’s steel mills purchased more coal so that they could raise their output. China is the world’s largest consumer of coal. How would this change be illustrated on a demand and supply diagram for coal?

  • Aa fall in price with a movement along the supply curve
  • Ba movement along the demand curve with a rise in price
  • Ca rise in price with a shift in the supply curve to the left
  • Da shift in the demand curve to the right with a rise in price

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