Economics 0455 · IGCSE · Price determination

Price determination — practice question

The diagram illustrates the market for cherries in Chile. What would lead to the market equilibrium shifting from $E_1$ to $E_2$?

  • Aa newspaper article stating cherries are good for your health
  • Ba poor harvest for cherries due to bad weather
  • Can increase in the imports of cherries from Israel
  • Dthe government reducing the sales tax on cherries

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