Economics 0455 · IGCSE · Supply

Supply — practice question

The diagram illustrates a movement of the supply curve for cars in China from $S_1$ to $S_2$. What is the most probable reason for this movement in the supply curve?

  • Aan increase in an indirect tax on petrol in China
  • Ban increase in the price of cars in China
  • Can increase in the wages of Chinese car workers
  • Da new subsidy given to Chinese car manufacturers

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