Economics 0455 · IGCSE · Price determination

Price determination — practice question

The diagram illustrates the demand and supply curves for a product. At first, the market is at equilibrium at point $X$. What would be the new equilibrium point if production costs declined and a rumour spread that the product might be unsafe in extreme weather conditions?

    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